iQuanti: Gender gaps exist in many places, even in places you might not expect — such as in the life insurance world. According to LIMRA's 2021 Insurance Barometer Study, only 1 in 5 women felt "very knowledgeable" about life insurance, which is less than the 33% of consumers overall who felt confident. Additionally, life insurance ownership for women is only 47%. That's far less than the 58% of men who have a policy. 

It's clear there's a gender gap right now, and there are plenty of benefits for women to close the gap and get a life insurance policy. This article will explore a few reasons women should get life insurance, then discuss term and permanent life insurance for women.

Reasons women should get life insurance

There are several reasons women should close the life insurance gender gap:

Women earn more than ever

Women are rapidly advancing their incomes relative to men. This gives them more financial room to invest in useful financial tools, like life insurance. Many women may find that using some of their income to financially protect their loved ones is well worth the cost for the peace of mind it provides.

It can help women in any family situation 

Life insurance can be a valuable financial tool whether you're single or married, with or without kids. If you're young and single with no kids, life insurance may still be a good idea if you have loans or other debts. After all, someone will receive your assets if you pass away early, and a death benefit can help them get more of that tax-free.

If you're married, the benefit is that you can provide for your spouse and children if you pass away. But it can be even more important if you're a single mother. If you pass away early, a life insurance policy can ensure your children have the financial security they need.

It can help stay-at-home moms

Staying at home to raise the kids is a full-time job. If you pass away early, your spouse may not be able to take on both raising the kids and holding down the job they have. A life insurance policy can provide the funds needed to hire someone to take on those tasks if necessary. 

Types of life insurance for women to consider

There are two broad types of life insurance women can consider:

Term life insurance

Term life insurance lasts for a fixed period you can choose from, usually 10 to 30 years. If you pass away during the policy period, the death benefit pays out. There's a risk of outliving the policy term, but premiums are much cheaper than permanent life insurance.

Permanent life insurance

Permanent life insurance costs more than term life insurance but provides guaranteed coverage for a lifetime as long as you keep up on premiums. Additionally, it comes with a cash value growth component. Your insurer puts part of each premium into this component, which then grows at a certain rate depending on the type of permanent life insurance policy you get.

Closing the life insurance gender gap

There is still a significant gender gap in life insurance. These days, however, women are earning more on average than they ever have, making it even more important to further protect themselves and their families with a life insurance policy. Plus, life insurance can be tailored for your situation, regardless of marital status, parental status, and work arrangements.

The key is to determine whether you want to save money with term life insurance coverage or pay more for lifelong coverage and savings with a permanent life insurance policy. Researching the ins and outs of these policies will help you feel more confident shopping for life insurance policies and locking in a great rate on a policy that fits your needs. Ultimately, that will go a long way in closing the gender gap.