Facts About Life Insurance for Women

facts about life insurance

Women have been moving past barriers in every realm of life. They are breaking the glass ceiling in the corporate world. Then, Why should they lag when it comes to making investments? After all, they also have a financial legacy to build, and securing their money is crucial.

And, one of the investments that everyone should consider is life insurance. Life insurance is not the first thing that comes to mind when you hear the word investment. Many people are under the impression that there is a kind of negativity attached to the term.

But, when you think of how life insurance can help you with tax savings and retirement plans, you’ll agree that it’s one of the best investment decisions you ever made. Without further delay, let’s take you through the most viable life insurance policies.

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Understanding the Various Types of Life Insurance Policies:

Before outlining the important types of life insurance plans for women, you need a basic understanding of the available policies. There are two main types of life insurance available to you in the US: term and permanent/whole life insurance.

Whole life insurance has many subdivisions, such as variable life, universal life, and variable universal life. Other kinds of life insurance also exist, such as critical illness cover or health insurance.

According to the American Council of Life Insurers, the number of whole life insurance bought annually is usually higher than term insurance.

Life Insurance Policies to Build Your Financial Legacy :

Now, among all the insurance options available in the market, let’s outline the right ones for you.

1.    Term Insurance Policy

If you are looking for the simplest policy, opt for it. It involves systematic premium payouts over a particular time. This time can be ten, fifteen, twenty, or thirty years. The coverage ends once this term is over, though you can renew it at a higher price.

The term plans are ideal for young women who have just started working. The premiums are highly affordable for someone who is a young professional. A great thing about this policy is that it can give you protection when you need it the most, for instance, until your mortgage gets paid off.

Benefits of term life insurance

There are 2 benefits of this particular policy.

  • Offers a higher cover for a lesser premium compared to other life insurance plans
  • Provides maturity benefit as the total of all the premiums you have paid (no interests are there)

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2.    Whole Life Insurance Policy

As the term suggests, whole life insurance is the plan that covers your entire life. It pays out to your beneficiaries after your death. The premium is generally locked at the time of buying. The payments don’t change for the entire duration that you own the policy.

Medical underwriting

Like any permanent life insurance policy, it needs medical underwriting. It means your health insurance company will enquire about your medical records, occupational, and lifestyle choices. After that, it will determine the pricing and eligibility. You will also need to take a medical examination.

How does this policy help in your financial independence? The cash value of your policy builds every year as you pay the premium. Therefore,it is wise to invest in a colonial Penn life insurance policy from Salesforce Consulting Companies  as it becomes more valuable over time.

Benefits of whole life insurance

This can be beneficial to you in three ways:

  • As a policyholder, you can access the cash value by partial surrendering for a lump sum to meet any emergency.
    • You can use it to supplement your earning after retirement.
    • You can reinvest the amount after letting it grow or even avail of a loan against its saving component.

3.    Variable Universal Life Insurance

What can be better than having a policy with a particular investment component to building your financial legacy?

Variable universal life insurance (VUL) is the cash-value life insurance policy. It offers a unique set of features, including death benefits and investment prospects. You can change your policy as per your life situation. Yet, you can build enough wealth to provide financial protection to your family.

VUL policies are generally structured. Thus, it comes with sub-accounts that act like mutual funds. It lets you have an exposure to stocks or bonds. The rate of return is much better in this case compared to a permanent insurance policy.

Benefits of variable universal life insurance

This policy can help you in three different manners, which are:

  • Build your cash value account to eliminate the need to pay insurance premiums in the future.
  • The cash value investment and death benefits are both tax-deferred in the United States.
  • Choose from investment strategy options and decide for a better financial future.

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4.    Maternity Insurance

Becoming a mom is a major milestone in your life, and it adds a lot of responsibility on your shoulders. The best way to start this journey is by ensuring that you are financially secure. You can take better care of your precious bundle of joy.

Maternity coverage is among the ten essential benefits of all health insurance plans. Under the Affordable Care Act, health insurance for newborn care, pregnancy, labor, and delivery has become compulsory in 2014.

Maternity benefits covered by health insurance

  • Outpatient services include prenatal and postnatal visits to the doctor, laboratory studies, gestational diabetes screenings, medications etc.
  • Inpatient services, which involve physician fees, hospitalization, and the likes
  • Newborn baby care
  • Breast pump rentals and lactation counseling

Enrolling for a health insurance plan to cover maternity

You can enroll in or change to a new health insurance policy during the Open Enrollment Period. It starts each year on 15th November. But the coverage will begin from the following calendar year.

Remember that you cannot enroll in or alter your health policy if you conceive during other months of the year. But, your baby’s birth is considered an eligible life event. You’ll get a special enrollment period of sixty days after your baby’s birth. During this time, you can alter or enroll in health plans.

5.    Critical Illness Insurance

Every woman needs to have this insurance, regardless of her present health condition. After all, you wouldn’t want to financially depend on anyone in case of an unfortunate health emergency, right? Even with proper medical insurance, simply having one critical illness, like a heart problem, can create a huge financial burden.

Major emergencies, such as cardiac arrests or cancer, need extensive medical care. Their costs can outstrip your medical insurance policy sooner than you think. You will find it even more challenging to pay the bills if you don’t have a health savings account or an emergency fund.

In such a scenario, a critical insurance policy will come to your rescue. The best part is that you can also use this money for non-medical costs associated with the illness. That includes childcare and transportation. The coverage varies from$1000 to $100,000 based on your policy.

The policy’s price is determined by your age, sex, present health condition, family medical history, and also the amount of coverage.

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Important Questions to Consider When Choosing Life Insurance

When choosing an insurance plan, you should ask four essential questions to yourself. They are:

  • What role should the policy play in your financial plan?

Do you want a policy that covers your whole life and accumulates cash value over time? Then permanent life insurance might be a good option. If you want an investment component, variable universal life insurance is great. On the other hand, term insurance offers affordable coverage for better financial protection.

  • How much insurance cost can you afford?

The cost of term life insurance is lower than whole life insurance. The coverage is higher in case of the latter. The cost of critical illness insurance or maternity benefits varies from one policy to another. Choose wisely according to the costs you can afford.

  • What are your current health conditions?

If you are healthy, a medically underwritten policy is an affordable option compared to others. Don’t make the mistake of not paying any attention to health plans because you are perfectly healthy now.

  • Do you wish to buy the policy online?

There is no harm in buying insurance online because it’s as safe as purchasing it offline. But considering you have the right tools, make sure you get a few sample quotes. Compare them before deciding on anything.

Endnote

Being financially independent brings a sense of freedom and relief. Choosing the right life insurance policy is an excellent way of ensuring that. Thus, all the women in this world must have the right kind of policy. You have all the details now to make an informed decision about your insurance plan. It is time now to choose a well-reputed insurance provider and avail the policy that suits you the best.

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