Life Insurance Awareness Month: Three questions women breadwinners should ask to help determine how to protect their income

Rock Island, IL, Sept. 13, 2017 (GLOBE NEWSWIRE) — September is Life Insurance Awareness Month. And as the share of women who are the sole or primary breadwinners continues to grow, so does the need for them to protect their incomes. According to the Center for American Progress, women are the primary breadwinners in 42 percent of U.S. households1. Yet only 56% of women have life insurance at all2 and when they do, it’s often less than men.3 

“Every woman needs to consider how important it is to protect her income and the value of what she provides at home in the event something would happen to her or her spouse,” urges Cynthia Tidwell, President/CEO of Royal Neighbors of America, one of the largest women-led life insurers in the United States. “As a mother, daughter, friend, and colleague, I have experienced first-hand the loss of loved ones and those I care about. It’s important, especially for women who tend to undervalue their worth, that they understand how life insurance can help replace their salary, pay off a mortgage, cover childcare expenses, or protect college dreams should they die prematurely.” 

Three life insurance questions to ask:

  1. How much will it cost to pay off your debts such as a mortgage, credit card payments, auto or other loans, if you were to die prematurely?
  2. What are your ongoing expenses? Don’t forget childcare, tuition, grocery, and energy bills.
  3. Do you have enough to pay for funeral expenses? The average funeral costs about $7,000.4

The Life Insurance Market Research Association (LIMRA) reports that one in three U.S. households have no life insurance at all.5 For those that do, they only own enough on average to replace household income for 3 years.6The recommended industry rule of thumb is taking out life insurance coverage equal to five to 10 times your salary.7 

Calculate how much life insurance you will need.

“When people are considering life insurance, they need to understand how it can help. After the loss of a parent or partner, money is often one of the first worries they may face regarding funeral costs and financial obligations,” says Royal Neighbors’ appointed agent, Joe Ciaccio, Tampa, FL. “It’s definitely a conversation worth having now with those you love.”

About Royal Neighbors

Royal Neighbors of America, one of the nation’s largest women-led life insurers, empowers women to meet the needs of their families with annuities and life insurance products such as whole life, term, simplified issue, and universal life. Royal Neighbors was founded in 1895 and is headquartered in Rock Island, IL, with a branch office in Mesa, AZ. For more information, visit www.royalneighbors.org or call (800) 627-4762.

1Center for American Progress. (2016). Breadwinning mothers are increasingly the US norm. Retrieved from: https://www.americanprogress.org/issues/women/reports/2016/12/19/295203/breadwinning-mothers-are-increasingly-the-u-s-norm/

2LIMRA. (2016, November 16). Women still lag in life insurance ownership. Insurance Newsnet.com Retrieved from: https://insurancenewsnet.com/oarticle/limra-women-still-lag-men-life-insurance-ownership#.WZRwLFV96Mo

3LIMRA. (2016). Life Insurance Ownership in Focus: U.S. Person-Level Trends, 2016 LIMRA Ownership Study. 

4National Funeral Directors Association. (2015, October 1). NFDA releases results of  2015 member general price list survey.  Retrieved from: http://www.nfda.org/news/media-center/nfda-news-releases/id/840/nfda-releases-results-of-2015-member-general-price-list-survey

5LIMRA. (2016). Turn Up the Volume: $12 Trillion Sound Opportunities — 2016 LIMRA Ownership Study. 

6Ibid, pg. 12.

7Herschkorn, L. (2105, April 1). Life Happens. Do you really need 10x your salary? Retrieved from: http://www.lifehappens.org/blog/do-you-really-need-10x-your-salary-in-life-insurance/

W2017-5; Rev. 9-2017

Attachments:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/94389dee-0ef8-4bb5-a6c6-b9a1102f7e66

Attachments:

Leave a Reply