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Get Your Free Insurance Quote Below:
Women Outlast Men - The Financial Concerns
By: Patty Reiners FLMI, ACS
Discussing
life insurance with your spouse is sometimes a difficult conversation.
But it's a conversation that should happen. The average American woman
is widowed by age 56 and nearly 85% of the elderly poor in the nation
are female. Many women aren't prepared for this life event –
emotionally or financially.Replacement of income is one of the primary
reasons to purchase insurance and with the average American male making
more than the average female – this issue should drive the
need for the
conversation for women.Wake up to the FactsSeventy-five percent of
American married women will become a widow someday. To prepare for
someday – you need to have a serious discussion with your
spouse.
Sit
down and have each person list the things they want for their family in
the future. Larger home, college education for the children, early
retirement, etc. Then compare those lists and determine how much you'll
need to achieve those goals if your spouse's salary is lost.Over our
lifetime, a person's total income can add up to a sizeable sum. This
amount would help protect the financial future of those left behind.
For example:
How
Much Life Insurance?Once you've started the discussion, then you need
to decide how much life insurance to purchase. How much will you need
to replace your spouse's future income?The United States Department of
Justice distributed a formula to the surviving family members of those
lost on September 11. As an example:
- The economic loss of a 30-year-old married individual
with two children who was making $50,000 a year is nearly $2 million.
That calculation goes far beyond the two or three times income that
many employers offer as group life insurance benefit.
Some Other Key FactorsWomen have several other topics to
factor into the equation.
- What are your other outstanding debts –
from mortgage to credit cards
- The future costs of your children's' education
- How much will you need to maintain your lifestyle
into retirement
Other
Income SourcesOnce you have put together your profile, consider any
additional income you currently have to help you determine if you need
to increase or decrease the amount of insurance you'll need. Some of
these include:
- Other life insurance policies
- Taxes that reduce take-home pay
- Savings and other assets
- Earning power of survivors
- Social security benefits for children
- Duration of the income need
These suggestions come from the experts at Ameritas Direct. You can
learn more online at www.ameritasdirect.com. Patty Reiners
FLMI, ACSAVP - Ameritas Direct 1.800.555.4655 Statistics used in the
story from www.womanslifeins.com.
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