What Women Need to Know about Life Insurance

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Life Insurance for WomenAt Huntley Wealth Insurance, we help males and females alike purchase affordable term and whole life insurance to provide valuable protection for their families, businesses, and estates.

While the name of this particular website intends to attract a male audience, we DO provide quality advice and pricing for women needing life insurance as well.

Why Women Need Life Insurance – And Why They Typically Don’t Have It

At Huntley Wealth, approximately 30% of our life insurance clients are women.  This statistic speaks to the importance of the working wife and/or mother in modern times.

Today, many women provide a valuable, irreplaceable income for their families, which, if lost due to sudden death, would leave these wives’ and mothers’ families having to cope with one less income.

That’s where life insurance comes to the rescue.  Life insurance is commonly used to insure future earnings.  For example, if a woman earns $75,000 per year, and will do so for the next 20 years, she might purchase a 20 year term life insurance policy with a death benefit in the range of $1 Million to $1.5 Million.  If the death benefit earned 5%, her surviving husband or children could draw 50K to 75K from the death benefit to pay bills, the mortgage, and provide for needs without the funds ever depleting.  What would the surviving family have done without these funds?

The problem with modern families is that women generally have less life insurance than men, according to MetLife’s most recent “Employee Benefits Trends Study” in 2011.  The study also showed that women are more concerned about the impact their sudden death could have on their families than men, which is wonderful, and in my opinion, as a man with a wonderful, loving wife, I can certainly understand that.  So why aren’t females properly insured?

The key problems, or myths, I think, revealed in this study and others have to do with cost and simplicity of the life insurance process.  A study from Nielsen/Claritas proved that 44% of high income women (earning in excess of 50K per year) believe that life insurance costs more than they can afford.  Furthermore, 67% of the same women believe that selecting a life insurance product is a complicated process.

Life Insurance Costs Too Much

In most cases, life insurance is very affordable… dirt cheap even!  First, women pay less than men for life insurance, since their life expectancy is longer on average.  If you are in good health, let’s just say you can probably afford life insurance at some amount.  For example, I’ve provided quotes below for $500,000 of coverage.  Of course, your coverage could cost even less if you purchase a lower face value.

Quotes for Female, Excellent Health, $500,000 Coverage, Non Tobacco User

Age                                    10 Year Term             20 Year Term             30 Year Term

Female Age 30                          $13                                $18                             $27 – Per Month

Female Age 40                          $16                                $26                             $42 – Per Month

Female Age 50                          $35                                $59                             $97 – Per Month

Female Age 60                          $78                                $148                           $213 – Per Month*

*Note that these quotes are available as of 12/15/2011 and are subject to change.  Rates quoted would apply to female, non smoker, who can qualify for best class health classification.

The Life Insurance Process

For those of you who believe selecting a life insurance product is complicated, please allow me to outline the steps to selecting, applying for, and purchasing a life insurance policy.

  1. Speak to a knowledgeable independent agent about your health history.  If you take any medications or have a history of medical conditions, a good agent will know which companies will rate you at the best health classification, which will save you money.  Your agent should also be able to quickly and clearly explain the types of life insurance and how much is appropriate for your needs.  This should take about 10-15 minutes over the phone.  Call an agency like Select Quote, Accuquote, or our agency, Huntley Wealth.
  2. The application process is straight forward.  At our agency, we take information (address, drivers license, legal name, beneficiaries, etc.) over the phone and send the application to our clients to sign.
  3. After completing and signing the application, most insurance policies require a medical exam.  The cost of the exam is paid by the insurance company.  The exam typically includes blood and urine specimens.
  4. After the medical exam, you’ll be approved typically in 2 to 6 weeks.  The time it takes to approve you primarily depends on whether or not medical records will be ordered from your attending physician’s office.
  5. Once approved, your agent will forward your policy to you.  You send payment, and sign a form showing you received the policy.  Once all requirements are received by the insurance company, your policy will be in force, or effective.

The Met Life study reported women who do have life insurance typically are unaware of the type of coverage (i.e. term, universal life, or whole life) that they possess, and undervalue the amount needed to properly insure their lives to meet their families’ financial needs.  Please don’t fall into this category.  If you have a policy and aren’t sure what benefits it has, or if you need life insurance, please call us to review your needs at 877-996-9383.