LIMRA Report Shows Women Lag Behind in Life Insurance Coverage

Life InsuranceA study released by LIMRA in September of 2011 reported that women, like their male counterparts, are not covered with life insurance like they were previously.

Although younger women are now just as likely as men to have some levels of coverage, women ages 55 and older are still considerably less likely than men the same age to own life insurance policies.

The same study showed that women of all ages average smaller amounts of individual life coverage than men of the same age range. On average, women have roughly $130,000 of individual life insurance, while men have around $187,000 of individual life insurance coverage.

The gap in average life insurance coverage between husbands and wives with similar personal incomes has narrowed over the past six years, partly because insured wives have seen smaller declines in amounts of individual life and group life coverage than husbands with similar personal incomes.

Strangely, women with high personal incomes of more than $100,000 annually are less likely to have personal life insurance or group life insurance than men with roughly the same income level.

Now, we all know that women and men need coverage for various reasons. Some of those include: to pay off mortgages, funding college education, providing for retirement and giving the monies necessary for an unlimited list of expenses.

Leaving a spouse behind to shoulder such burdens is awful for the surviving family member and often times possessions are lost in the process. Even if that doesn’t happen, standard ways of living can certainly be altered.

A man buys life insurance for the same reason a woman should: to protect his family, replace lost income upon death, his own retirement, and a myriad of other reasons.

With most families in America dependent on two incomes it is not good to hear that women are often underinsured when it comes to life insurance.

Historically, males accounted for 57 percent of all life policies in the U.S., according to the American Council of Life Insurance. The same study showed that women represented about 29 percent of life policies in the U.S. That gap is closing, but women still don’t have enough coverage.

Married couples today are more economic partners than 50 years ago. If something happens to one partner, the spouse is left to shoulder the burden alone. If something were to happen to you, wouldn’t it be nice to know you provided for your loved one even after you were gone.

Women have proven they can do it all. They have careers and maintain homes, but now they need to also secure adequate life insurance too. It’s a decision that can pay dividends should the unexpected happen. Women should consider their own loves one’s financial security and seek the coverage they need.

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