There are many reasons why life insurance should play an important role in financial planning for each person. Yet women often neglect this key asset protection strategy and are much more likely than men to be underinsured or have no coverage.
Whether you are a single woman, half of a couple or a member of a larger family network; if you work at home, in the workforce or as the leader of your own business; Life insurance is essential to protect the transfer of your assets and, more importantly, to protect your loved ones in the future. (For more, see: Understanding the different types of life insurance.)
As an individual, it is easy to think that you do not need life insurance because you have no dependents. What is often overlooked is that life insurance can be used to pay your debts, end taxes, and other real estate expenses-costs that might otherwise be a financial burden to the surviving relatives. (For more, see:. Questions to ask beyond estate planning)
Modern families increasingly depend on two incomes to cover ordinary living expenses to provide extras like travel or leisure activities and finance long-term financial goals, such as costs for education or retirement . If you are a working woman, a life insurance payment can help mitigate your loss of income to your partner or the lifestyle of the family and their future financial goals.
If you’re one of the growing number of women business owners, life insurance can provide intermediate money to keep your business expenses such as payroll or other operating costs, then your business is sold or transition, and when your estate is settled. It can also be a useful tool in structuring the sale and purchase arrangements, and to cover the potential loss of other key members of your business. (For related reading, see: enjoy the small business grants for women.)
As a single parent, you can have the primary responsibility for the support and welfare of your child. If so, life insurance can offer you peace of mind as needed ensuring continuous income to support the future of your child grow and succeed. (For details, see 6 life events that call for professional advice.)
Maintaining a household is a full time job. Specifically, there is a lot of full-time jobs rolled into one! If your family had to hire professionals to cover the tasks that you provide as a mom stays home, the costs would be significant. You can also assume these responsibilities themselves can limit the hours that family members could work, resulting in the reduced family income. A life insurance policy can help pay for services to keep the house running, and allow your surviving spouse or family members to continue working. (For more, see:. Estate planning for spousal survival)
Many women also care for elderly family members and children. Caring for an elderly parent can include costs for medical expenses out of pocket, adult day care, specialized transportation, and more. life insurance coverage can provide the necessary funds if these financial responsibilities are likely to continue after your death. (For more, see:. Financial Tips for Women of any age)
The information contained herein is obtained from sources believed reliable, but their accuracy or completeness is not guaranteed. This article is for informational purposes only. The opinions expressed are those of SageVest Wealth Management, and should not be construed as investment advice. All expressions of opinion are subject to change and past performance does not guarantee future results. SageVest Wealth Management does not make them legal, tax or accounting. Therefore, you, your lawyers and your accountants are responsible for determining, tax and accounting legal consequences of all the suggestions here.
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