Did you know that women's earnings are making up a larger share of family income than ever before? According to Statistics Canada, women were the breadwinners in more than 40% of Canadian households in 2015. That’s up from just 17.4% of households in 1976.
With this shift, life insurance becomes increasingly important.
To put it simply, life insurance can give you financial security in case of an early death in the family. Here’s why it matters and how it can help you.
Why women need life insurance
Losing your income could reduce your family’s earnings by more than half. This can greatly affect their quality of life. Ask yourself this: Would your family be able to support themselves financially without your help? Could they afford rent or the cost of food if you weren’t around?
The right coverage, on the other hand, provides a buffer to help cover the cost of living. That means your family will stay secure in case something happens to you.
How life insurance helps single moms
Are you a single parent or the sole earner in your household? Then life insurance is even more important.
Taking out a life insurance policy with your children as the beneficiaries helps secure their financial future. How? As beneficiaries, your kids will get a tax-free death benefit in case you die.
What’s a death benefit? It’s the amount of money a beneficiary gets when an insured person dies. (The exact amount of this benefit depends on your policy and how much coverage you buy.) Your beneficiaries can then use that money to pay off things like:
- mortgage or rent,
- tuition fees,
- funeral costs or
- any other living expenses.
You can also insure any child or spousal support you receive. So you’re covered in case something happens to your ex.
How life insurance can help caregivers
Of course, women contribute to households in more ways than just financial.
In addition to working, many women tend to take on the bulk of caregiving duties — for children, partners and aging parents.
Because of this caregiving imbalance, getting life insurance is even more critical for continuity of care. While nothing can replace your care, life insurance can help cover the cost of childcare, nursing care or home support. It helps ensure your loved ones will continue to receive the support they need if something happens to you.
How to choose the right type of life insurance for you
When it comes to life insurance, there’s no one-size-fits-all solution. Your income, debt and cost of living — including added expenses, like home healthcare — all affect the amount of coverage you need.
- Try this life insurance calculator to estimate how much coverage you might need.
You’ll also have to consider what type of life insurance will best suit your needs. For example, you may just want coverage for a set amount of time – say until your kids have graduated college. In which case, you may consider a term life insurance plan.
Or, perhaps you’re looking for lifelong protection, which is provided in most permanent life insurance plans.
You can also ask an advisor for help.
An advisor can lay out other insurance options too, like disability insurance or critical illness insurance. Depending on your situation, you may need more than one type of insurance to help protect your family’s future.
Ready to get started? Get in touch with an advisor near you.
Or, click here to get a life insurance quote online.