Boss Lady

Why business women need life insurance


Life insurance.  Not the ‘sexiest’ of financial topics to discuss, but quite possibly one of the most important ones.  Before you begin collecting quotes, from online websites, or a local insurance agent, you might want to have a few questions in the back of your mind, to ask.

Life insurance replaces your current, and future income

In certain situations, perhaps you are the bread winner for your family.  It’s very common for women to make more money than their spouse.  Or maybe their spouse is a stay-at-home parent.  If something were to happen to you, how does your family move on financially?

Life insurance is the perfect financial product, to replace not just your current income, but future earnings as well.  At a minimum, you’ll want 10 times your annual income in coverage.  If you have children, you may want to factor in the costs of raising kids, and even paying for their college.

Leaving enough life insurance proceeds for your family, will help them continue their current standard of living.  This also gives you peace of mind.  We know this is unpleasant to think about, but it is a responsible way to make sure your family will be well off, at the time of your death.

Life insurance rates have never cheaper

Life Insurance rates are determined by a person’s gender, age, and overall health.  Good news if you are a woman, as your life insurance rates, will be lower than men.  Statistics show that women tend to outlive males, by eight to 10 years.

Women also tend to develop diabetes, and other severe health issues like cardiovascular problem later life.  These trends have been studied by life insurance companies for years, and leads to you getting lower priced policies.

According to Matt Schmidt, CEO of Diabetes Life Solutions, people who aren’t in perfect health, can still get good life insurance rates.  “Life insurance for people with diabetes, or other chronic illnesses, has never been easier.   Companies now offer policies, without any extra rates, to women with diabetes.  In years past, it was common to pay maybe four to five times more in premiums, if you had diabetes.  That’s no longer the case.”

Most women will need some type life life insurance.  If looking for the lowest priced option, you would be pleasantly surprised, how inexpensive term life insurance coverage would be for yourself.

Life insurance policies can be used while still alive

The days of using life insurance only at the time of death, are over.  Many companies are now offering life insurance policies, with built in “living benefit” riders.  Over time, companies have listened to the public, and realize that you may need to utilize part of your policy, while being alive.

Living benefit riders simply mean that if you are diagnosed with a terminal, chronic, or critical illness, you can accelerate part of your life insurance policy, to help out your family.  For women who run their business, this could be the difference between you company closing down, or keeping it running until you are able to get back to work.

If a person is diagnosed with a heart attack, cancer, stoke, or organ transplant, certain policies will pay you a lump sum amount, for you to use how you see fit.  Many business owners have policies like this in place, to hire somebody, to run your business, until you recover.  Or, maybe you need money to address medical expenses that health insurance doesn’t cover.

Policies like these provide flexibility to a business woman, and allows them to use a policy as she sees fit.  We hope that you would never have to utilize a policy for health issues, but if you did need to get to a life insurance benefit, we hope you have a policy with these riders.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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