Best life insurance for women

Life insurance for women

For many women, a robust life insurance policy provides an essential layer of financial protection for their loved ones. Whether a woman is the family provider or a stay-at-home partner and mom, her loss may cause budgetary challenges that can be mitigated with the right life insurance.

There are a number of reasons for women to consider a life insurance policy. Perhaps most important for many is the need to provide financial protection for minor children. This need can be even more vital in a single-parent household. Premiums for women are often less than those for men since women statistically live longer than men, making insurance a favorable addition to a strategic financial plan.

Many women also care for elderly parents, and here, too, life insurance offers benefits by providing the means for adequate health care and other protection for older adults if their daughter should pass away.

Even a woman who is a stay-at-home mom provides services to her family that can be costly. One recent estimate placed the value of a stay-at-home mother's services at roughly $184,000 a year—a considerable amount to replace if she were no longer in the picture.

Women also tend to save less than men on average, meaning they are likely to leave less of a nest egg for their loved ones. A study by the American Association of University Women (AAUW) indicated that women in the workforce make only 84 cents to every dollar earned by men, giving them fewer resources to save for the future. A life insurance policy can help overcome that lack of savings.

Best life insurance companies for women

When women consider life insurance, it’s often with their loved ones in mind — children, partners and the need to protect their family’s future. The right life insurance policy can provide peace of mind, offering financial support for childcare, education costs, household expenses and more. Finding the best life insurance company isn’t about one-size-fits-all solutions — it’s about choosing a provider that offers strong, flexible options to meet your unique needs. 

While life insurance products aren’t specifically tailored to women, many insurers offer policies and riders that can adapt to different life stages. By comparing quotes and selecting a company that prioritizes flexibility and support, you can take a meaningful step toward safeguarding your family’s well-being.

Types of life insurance for women

Life insurance falls into two main categories: term and permanent. The right policy type for you depends on your individual needs, goals and circumstances. Buying life insurance as a woman may bring unique questions, so talking to an agent is often the best way to land on the right policy. However, learning about each type of policy could also help you choose the one that best fits your needs (and your budget).

Term life insurance

Term life insurance is coverage that lasts a specific number of years. Common options are policies lasting 10, 20 or 30 years. Term can be a smart choice if you need coverage for a specific period—such as while your children are young—but know that you likely won't need coverage at a future date. Your death benefit pays out to your beneficiaries if you pass away at any point during the policy's term. If your need for coverage changes, many insurers will allow you to convert your term policy to a more permanent type of insurance if necessary. Unlike permanent insurance, term policies do not have a cash value and are usually simpler and less expensive than permanent forms of coverage.

Many women opt to carry term life insurance while their children are young. Doing so could provide peace of mind that your beneficiaries will have financial assistance if you happen to pass prematurely. However, term policies may not be the best choice for every woman, so considering the pros and cons could be essential when shopping for new life insurance.

Permanent life insurance

Permanent life insurance is designed to provide lifelong coverage — with maximum coverage ages ranging from 95 to 121 — as long as you pay your premiums, making it a lasting financial tool to protect your family. Unlike term life insurance, which expires after a set period, permanent policies guarantee a death benefit payout, which is why they tend to cost significantly more — often 10 to 15 times the cost of term policies.

One key feature of permanent life insurance is its cash value component. Over time, this cash value can accumulate and become a resource you can access while still alive. Policyholders may withdraw from the cash value or take out policy loans, depending on the type of policy, but it’s important to understand the financial implications. Withdrawals typically reduce your policy’s cash value and death benefit. Loans, while a useful feature, accrue interest and need to be repaid. If the loan isn’t paid back, the amount borrowed, plus interest, will be deducted from the death benefit, leaving your beneficiaries with less.

There are several types of permanent life insurance, each designed to meet different needs:

• Whole life insurance: The premiums are fixed, and the cash value of this type of policy grows steadily based on a guaranteed set interest rate.
• Universal life insurance: The premiums are flexible, and the cash value grows based on an interest rate set by the insurer.
• Indexed universal life insurance: Flexible premiums, and the cash value earned based on a specific market index, such as the S&P 500.
• Variable universal life insurance: The premiums are flexible, and the cash value can be invested in subaccounts, typically including stock funds, bond funds and money market funds.
• Guaranteed universal life insurance: This is a low-risk policy with a fixed premium for your entire life. While it doesn’t accumulate much cash value, it’s a good option if you need more affordable permanent coverage than whole life insurance.

Permanent life insurance can be more complicated than term, so you might want to meet with a licensed agent or certified financial planner to get a full view of what type of policy can best meet your needs.

Frequently asked questions