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Wednesday Welcome: Know Your Worth, Three Reasons Why Women Need Life Insurance

CT-ssToday, we’re welcoming Cynthia Tidwell, President/CEO of Royal Neighbors of America, to the blog. Royal Neighbors of America is one of the largest women-led insurers in the U.S. September is Life Insurance Awareness Month, and Ms. Tidwell, nationally recognized as an expert in life insurance for women, discusses the importance for women and their families to be financially protected.

When I look to the future, I see great things for women. At no other time in our country’s history have women had so much opportunity to pursue education and careers; grow as leaders in their communities; and raise healthy families. A recent Shriver Report analysis found that women — including both married and single mothers — are breadwinners or co-breadwinners in two-thirds of families with children as of 2009. Plus, women dominate the global marketplace controlling more than 80 percent of consumer spending — the power of the purse!

Royal Neighbors challenges women to “Know Your Worth®.” Despite increased education and purchasing power, women are significantly underinsured compared to men, and many households have no life insurance at all. According to a 2011 LIMRA report, one in three U.S. households has no life insurance at all. For those that do, they only own enough on average to replace household income for 3.5 years. The recommended industry rule of thumb starts at twice that from 7-10 years.

Three ways life insurance protects women and those they love:

Life insurance is often misunderstood, and I hear many reasons why even the most knowledgeable women don’t purchase adequate coverage. Simply, life insurance can protect your family’s finances and all the things you care about if something were to happen to you. Here’s how:

  1. Life insurance can help pay off your debts such as a mortgage, credit card payments, auto or other loans.
  2. Life insurance can cover daily living expenses. Don’t forget daycare, tuition, grocery, and energy bills. Nearly two-thirds of financial decision makers admit they would have trouble paying everyday bills within a few months of a spouse dying prematurely, according to LIMRA, 2011.
  3. Life insurance can help protect for the unexpected (and expected). If something were to happen to you, there are many different options to help pay for expenses such as college tuition, weddings, or protect a family business. And don’t forget to plan for funeral expenses. They can be covered through life insurance proceeds (or your savings).

It’s more important than ever that a woman’s dreams and her family’s future are not at risk because she didn’t plan ahead. We encourage all women to act now. Get educated. Create a simple financial plan to reach clear financial goals and save for your future. And get life insurance to protect all that is important to you.

Since 1895, Royal Neighbors of America has been protecting women financially and empowering them to improve their lives, families, and communities.