It is said “Men are from Mars, women are from Venus”. With life insurance, gender make a difference as well — from the cost of premiums to the type of coverage you will need.
So for women shopping for a life insurance, don’t just settle for an insurance policy your spouse or your partner chose from himself. To guide you in getting the right protection, here are some things to keep in mind.
Lower risk, lower fees
Women usually pay a lower premium on life insurance compared to men. Why? Because insurance companies consider women a lower risk for a number of factors. For one thing, women have longer life expectancy. According to the World Health Organization (WHO) the global life expectancy of women is at 76 years compared to 71 years for men. Women also tend to work less in hazardous jobs than men and are less likely to engage in risky behavior such as smoking or excessive alcohol intake which can lead to health problems and shorter life expectancy.
Lifetime lifeline
Having a longer life expectancy, women generally outlive their spouse. This means women need a financial safety net that they can draw from during their lifetime. A permanent life policy would be best. Unlike term life which provides coverage for a specific period, typically 10 to 30 years, permanent life covers you for your entire life as long as you pay your premium. On top of this, it offers cash value which you can use even before your death. You can choose between two types of permanent life: whole life and universal life. While both build cash value over time, whole life has a fixed premium and a fixed cash value growth while universal life insurance offers you the flexibility to adjust premium payments and higher return potential.
Health concerns
For some women, certain health problems develop after their pregnancy such as chronic hypertension and cardiovascular disease. So don’t wait until after pregnancy to buy insurance. Because once you develop some medical condition, qualifying for life insurance becomes tougher and more expensive.
That said, being pregnancy or having health issues should not stop you from applying for insurance. Get help from independent insurance agents like Mercado Global Brokers. Unlike captive agents who represent a specific insurance company, independent insurance agents represent multiple insurance companies. This gives us the advantage of knowing which insurance companies are sympathetic to your health needs and are willing to cover special cases or offer a better rate.
Insurance checklist
Understanding how women’s financial needs differ from men’s, you’ll be better informed on what type of insurance makes the best fit for you. Consider the following questions as well:
- How much insurance coverage does your family need to cover financial needs such as daily expenses, school fees, loans?
- What long should your insurance coverage last given your financial goals and the ages of your dependents? Note that longer-term policies offer better value over time.
- What type of insurance would benefit your family most? With whole life or universal life insurance, you can tap into its cash value to fund your family’s needs – buying a house, college fees, emergencies – even before you pass on.
- What additional riders, such as critical illness riders, accidental death benefit riders, or waiver of premium riders, would you need on top of your coverage?
Choosing the right insurance may be overwhelming but not to worry. Just give Mercado Global Insurance Brokers a call and we can help you sort out your needs and offer you options that fit your budget and fulfill your financial goals.
