5 Things Every Woman Should Know About Life Insurance

5 Things Every Woman Should Know About Life Insurance
By Mischka Brinson

Ever heard folks say “If I knew then what I know now”? It is even more true when it comes to planning a solid strategy for your finances. Here a few things you can add to your toolbox to help you make more sound financial decisions.

  • Being single does not mean you do not need life insurance. Most people think about life insurance to pass down a legacy. I have heard lots of single ladies that do not have kids say they don’t need it just for that reason. A good life insurance policy will have something called living benefits. This allows you to access the funds prior to death in cases of chronic or critical illness for example.

Here’s a scenario – you’re single and are diagnosed with a chronic illness. You get treatment, but it leaves you needing time to recover not to mention the fact that more likely than not chronic illness comes with some kind of ongoing treatment. What do you do when you would rather take the time to rest instead of going right back to work, or if you are now realizing your mortality, maybe you would like to take those trips you kept putting off. Well, with the living benefit feature you can access those funds via your life insurance policy. This makes a world of difference for someone. Dealing with illness is stressful enough without having to add the stress of tight finances.

  • The younger you are when you secure a policy, the better. It is a good idea to secure a term and a permanent policy early in life. This allows you to get good rates and get lots more coverage at an affordable cost.
  • Think outside the box when planning your strategy. Insurance and retirement strategies go hand in hand. That living benefit feature we noted before – that allows you to not have to dip into your retirement should a critical or chronic illness occur.
  • When one thinks of a permanent policy, you think of Whole Life. That is what we all know of from hearing our parents talk about permanent insurance. There is now a more reasonable option for a permanent policy called an Indexed Universal Life policy. Like a Whole Life policy, it can last up to or past age 100. It has an interest rate tied to an index, for example the S&P 500. It also grows cash value and allows you to pay a flexible premium. In other words, there is a minimum premium you have to pay, and if you have extra funds you can pay above that amount which allows that cash value to accumulate faster. There are limits mandated by the IRS on how much you can pay above the minimum but your insurance company will make sure you do not hit that limit.
  • A term policy is not a waste. When you are younger if you find that the premiums for a permanent policy are too expensive, you can secure a proper term policy. This allows you to get a spot in line so to speak. You can covert that term policy to a permanent policy later on without going through underwriting again. This is worth its weight in gold.

One of the most empowering things a woman can do is educate herself on finances. Having this knowledge allows her to know what questions to ask when planning a strategy. This is a very good thing.

Mischka Brinson is a Life & Health Insurance Agent specializing in life, annuities, disability and long term care.

Contact Information
Email: mpbrinson@pottingerbrinson.com
Phone: 972-469-4870
Website: www.pottingerbrinson.com