New messages from Aflac |
View Notifications opens a dialog
Close X dismisses the notification alert
Women are quickly catching up to men as the sole or primary wage earners.1 This makes life insurance a growing priority for many women. However, in 2023, only 49% of adult women in the US owned life insurance. That is lower than the 55% of adult men with life insurance in 2023.2
This article will explain how life insurance for women works, cover some key facts about life insurance, and explore some types of policies women should consider. Then, we’ll explain how to find the right policy and a few situations where life insurance may be critical for women to have.
Table of Contents
Life insurance for women works the same way as it does for men. You pay monthly or yearly premiums, and, in exchange, your insurer agrees to pay your beneficiaries a death benefit if you pass away during the policy term.
As mentioned, women tend to have life insurance less often than men, despite their professional and financial advancements. Among underinsured or uninsured women, 44% said they need a policy or more coverage than what they currently have.2 Women can obtain many types of life insurance, such as Aflac term and whole life insurance.
Here are some key facts about life insurance for women:
Women have a slightly higher life expectancy than men, so they generally pay lower life insurance premiums than men when other factors, such as health, age, policy type, and coverage amount, are equal.3
Employers generally do not offer more than $50,000 in group term life insurance because the IRS may tax any coverage above $50,000.4 This may not be enough coverage for many women in many situations. Furthermore, you can lose employer-sponsored coverage if you change jobs, are laid off, or retire. Many women may consider getting a life insurance policy outside of work. This helps them get the coverage they need and remain protected if they leave their employer.
Pregnant women can get life insurance almost as easily as nonpregnant women. This can be an excellent idea because the policy helps ensure your new child is financially protected if you pass away during their childhood.
However, you will want to disclose your pregnancy to the medical examiner because they will likely not perform a pregnancy test. If you are getting a life insurance plan with no medical exam, you should disclose your pregnancy on the medical portion of the application. If you do not disclose the pregnancy and pass away during the policy’s contestability period, usually the first two years of coverage, your beneficiary’s claim may be denied.5
Women who are not the primary wage earners may want to still consider life insurance, depending on their situation. If you’re a stay-at-home mom, for instance, the death benefit can help your partner pay for childcare and similar costs if you pass away.
Women have many life insurance policies available to choose from. Here are a few policy types to explore:
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedConsider these factors when choosing the right life insurance policy for women:
Every policy type offers unique features. For example, term life insurance is cheaper than whole life insurance, but you can outlive the policy.6 Furthermore, there are several types of permanent life insurance, each differing in how premiums, death benefits, and cash value work. Compare several policy types to find the right one for you.
Assess your current financial and future financial situation to help determine your coverage needs. Account for your income and living expenses. Also, consider your long-term goals, such as sending children to college. A rule of thumb you may be aware of is to get a death benefit equivalent to 10 years of your salary.7 For instance, if you earn $50,000 per year, you would get $500,000 in coverage.
If you have more dependents, you may need a higher death benefit. For example, if you have a partner and several children, you may need to get a substantial death benefit to help cover their living expenses and fund future goals. On the other hand, if you have no partner or children, you may not need a large death benefit.
Passing away with debts can reduce the amount of your estate your heirs may receive and put a financial strain on them, especially if others rely on your income. Factor debts, such as a mortgage and auto loans, into your coverage calculation.
Life insurance can benefit women in many different situations:
Employed women who are the primary wage earners or whose incomes contribute substantially to the household finances can get life insurance to protect their loved ones. The life insurance policy can help replace your income if you pass away, helping your partner raise your kids and cover living expenses without financial strains.
If your partner is the sole earner and you stay home to care for the kids, you still help make substantial physical and financial contributions to the household. If you pass away, your partner will have to pay for childcare and other expenses related to maintaining the household.
Furthermore, your life insurance policy can help your loved ones cover your end-of-life expenses, such as funeral costs and medical bills. Your partner can also use the death benefit to help pay for your children’s education, pay off debts, and put your family into a more secure financial position.
Single parents can get a life insurance policy to help ensure their children are cared for if the parent passes away. After your passing, your policy’s payout can help your children’s guardian pay for childcare, education, and daily living expenses.
Single women can benefit from a life insurance policy by helping loved ones pay for funeral costs and travel to the funeral if they pass away. They can also use it to help aging parents pay for long-term care or medical expenses if the policyholder passes away.
Additionally, single women can purchase life insurance to benefit a charitable cause they support. They can name one or more qualifying charitable organizations as beneficiaries.
Women in the workforce are not the only ones who can benefit from a life insurance policy. Life insurance can also be important for stay-at-home mothers and those who are not the primary wage earners by offering their partner a death benefit to pay for childcare and household expenses. Therefore, getting life insurance can be a smart financial move for women in various situations. If you’re ready to add life insurance to your financial plan, contact an Aflac agent today.
Get Started
Universal life insurance is a permanent life insurance option that provides flexible benefits. Find out what universal life insurance is, how it works, and the pros and cons.
Life insurance with no medical exam can get you coverage quickly. Learn how it works and the types of no medical exam life insurance policies available.
Universal life insurance is a permanent life insurance option that provides flexible benefits. Find out what universal life insurance is, how it works, and the pros and cons.
Life insurance with no medical exam can get you coverage quickly. Learn how it works and the types of no medical exam life insurance policies available.
1 Debt.org – Women Rise as Primary Breadwinners, Some Still Face Challenges. Updated July 21, 2023. https://www.debt.org/blog/women-primary-breadwinners/. Accessed October 3, 2024.
2 LIMRA – Three Reasons Why the Women’s Market Holds the Key to Life Insurance Industry Growth. Published March 3, 2024https://www.limra.com/en/newsroom/industry-trends/2024/limra-three-reasons-why-the-womens-market-holds-the-key-to-life-insurance-industry-growth/. Accessed October 3, 2024.
3 Policygenius – Life Insurance Rates by Gender. Updated September 24, 2024. https://www.policygenius.com/life-insurance/gender/. Accessed October 3, 2024.
4 Internal Revenue Service – Group-Term Life Insurance. https://www.irs.gov/government-entities/federal-state-local-governments/group-term-life-insurance. Accessed October 3, 2024.
5 Bankrate – Life Insurance While Pregnant. Updated July 15, 2024. https://www.bankrate.com/insurance/life-insurance/pregnancy/. Accessed October 3, 2024.
6 Forbes – Term vs. Permanent Life Insurance: What’s the Difference? Updated March 8, 2023. https://www.forbes.com/advisor/life-insurance/term-vs-permanent-life-insurance/. Accessed October 3, 2024.
7 Investopedia – How Much Life Insurance Should You Have? Updated September 23, 2024. https://www.investopedia.com/articles/pf/06/insureneeds.asp. Accessed October 3, 2024.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans - B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
Aflac does not offer Universal or Variable Universal life insurance.
Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
Z2301209R1
EXP 10/25
