Women Must Plan Ahead for Their Financial Future and Life Insurance May Be the Option

A 2021 Insurance Barometer survey found that 43% of women felt they would leave their families with a difficult financial situation if they passed away unexpectedly. This number was five full percentage points more than the answers given by men in the same survey.

Women face earning power challenges that make it more important for them to look ahead into their future to plan for retirement and also need to generate additional liquidity in the event that they pass away. Women only earn 82.3% compared to their male counterparts despite the fact that they make up the majority of the workforce.

Women are also often responsible for elderly caregiving and a woman may be responsible for supporting herself, a spouse, aging parents and her own children. Women also have longer life spans to plan for because the difference between life expectancy in men and women in 2020 is 5.7 years. Women are caring for more people, living longer and earning less.

Planning ahead for a future as part of a couple or even as a widow is crucial for giving you peace of mind that you’ve done everything possible to cover your financial bases. With so many different questions to answer in the process of deciding your next steps, it can be helpful to work with an outside professional to determine what is most appropriate for you and your needs.

Appropriate risk mitigation strategies and estate planning tools are necessary to help cover some of these challenges. Set aside a time to meet with an experienced estate planning lawyer if you are concerned about planning for your own financial future and providing for your heirs.

 

 

How Much Life Insurance Is Enough for Estate Planning?

Each individual and family needs to determine the life insurance needs for their future. If you are the primary income earner in your house, you may need some substantial life insurance both through a group policy and a private policy that you maintain throughout your life to help support your loved ones if something happens to you.

If your loved ones are coping with your loss, life insurance provides an immediate asset to them to help make important financial decisions like paying for a child’s college education, or keeping the family home by paying off the mortgage. Most recommendations for how much life insurance you should carry depend on your goals and needs but start with considering basic things like burial expenses and a multiple of your income.

Life insurance can be beneficial for people of all ages because it can be used to replace income, pay off debt and provide for specific financial goals. Consider purchasing a minimum of 5 to 10 times your annual income while also adding in any other financial responsibilities you have within your family.

Calculating a number that would be enough to enable your loved ones to make these important decisions during a difficult time can make a world of difference and allow them to cover the most important financial costs based on the needs they are facing at that time. Life insurance inside trusts is another option when you work with a New Hampshire estate planning lawyer.

If you have more questions about how life insurance can work as part of your existing estate plan, schedule a consultation with a knowledgeable lawyer.