• Harry N. Stout

Do Women Need Life Insurance?


Written by: Michele Burkholder, Founder of The Burkholder Team

Before you read on, I have to share, that I think owning life insurance is a necessity. Men and women both need life insurance. I often meet with people who question whether a female partner that makes less or doesn’t have an income needs insurance. I would argue that it’s as important if not more important for women to have life insurance. I prefer Whole Life Insurance to meet a women’s needs. Here are a few reasons why:

1. Women out live men. According to the CDC the life expectancy for a male in the United States is 76.1. While for a Female it is 81.1[1]. That’s an additional 5 years, with the potential for additional health and estate planning needs. As a result, women have the following issues to resolve:

  • Long Term Care Needs: More women need long-term care than men. According to a study published by AARP, more than 70% of nursing home residents are women[2]. Many Whole Life insurance policies offer riders to their contracts that can help accelerate income or provide chronic illness coverage. Not to mention the ability to tap in to the cash buildup of your policy.

  • Estate Taxes: Since women are more likely to outlive their spouse, the estate tax issue begins at the time of the second death. Life insurance can help alleviate estate tax issues.

2. Women have dependents. Women have several people counting on their income and/or support.

  • Your spouse or partner is accustomed to living on your income.

  • Dependent’s rely on your income & support for current and future needs.

  • Not to mention, disabled and aging parents. Women typically handle this need and your loss of support translates to dollars that could be covered if you had a life insurance policy.

3. Women can benefit from supplemental Retirement income. Whether you didn’t save enough or your partner has insufficient Retirement Savings you can use the Cash Value of a Whole Life Insurance policy to:

  • Supplement income or cover an unexpected expense.

  • Reduce your reliance on investments when the market is down.

4. Female Entrepreneurs have additional Business Owner Obligations. A Whole Life Insurance policy can solve the following issues:

  • Provides a benefit to your partners, so you can keep the business running. It allows the business to pay employees and vendors after your death.

  • You can also benefit your dependents. This is critical when a majority of your net worth is tied to the value of your company.

I am a proponent of Whole Life Insurance. I don’t agree with the adage, buy term and invest the difference. Term insurance is the perfect solution for a short-term need, like covering a mortgage. Since women live longer, why would you solve a long-term need with a policy that expires when you need it most? Whole Life insurance, no matter if you die prematurely, or live a very long life, someone will be able to benefit from the money you invest in the policy.

For Educational Purposes Only – Not to be relied on as financial, tax, or legal advice. All investing involves risk and no investment strategy can assure a profit or protect against a loss in a down market. Life Insurance is subject to certain costs, limitations, terms, and conditions not outlined here. All guarantees are based on the claims-paying ability of the issuing insurance company.


[1] https://www.cdc.gov/nchs/fastats/life-expectancy.htm [2] https://assets.aarp.org/rgcenter/il/fs77r_ltc.pdf (AARP Public Policy Institute analysis of data from the 2004 National Nursing Home Survey)

2020 by NelsonWells, LLC

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