Is Term Life Insurance Gender Biased?

How much coverage do I go for when I enroll in term life insurance at 69? This is one question that concerns every person who is looking to buy insurance at this age. Insurance agents can help a person determine the amount of coverage that will be sufficient for him or her along with the time period it is required.

Some people apply a shortcut to determine the insurance coverage they need. For example, they use multiple of their present income to determine the face value of a plan. The draw back in using this method is that income of a person increases after a certain time whereas the insurance once bought, its benefits will remain the same throughout the term of the policy.

The plan purchased today based on present income will most probably be a smaller percent of the future income. As per a research from insurance industry many survivors find it difficult to meet out the financial commitments from the proceeds of term life insurance at 69; as the proceed was merely one third of the policyholder’s actual income.

Women and Term Life Insurance at 69

As per a research report there is major gap between male and female ownership of term life coverage. According to the study, the only silver lining in this recession period is that women have made several contributions in the business world.

The unemployment rate at the national level for men and women stands even at seven percent. For few months men unemployment rate outnumbered that of women. Unfortunately, women have fallen short. There is a huge deficit to be covered here.

Women now shares 49% of the workforce but 43% of them have no insurance at all according to a new study. There are still millions of families who depend entirely on the insurance of male members of a family. Little do, they realize that house expenditure will be equally affected on the loss of her income.

Shifting Habits of Insurance Consumer

As per a research finding from LIFE foundation more and more Americans prefer to buy life insurance at 69 by direct buying methods. Although, there is still, a large population who prefer to purchase it from the broker. But this number is decreasing at the rate of almost ten percent every year.

The study concludes that one in every four adults prefer to buy it online. A major portion of such people belongs to 25-44 age groups. Although, these people are more computer savvy then people in the 45-69 age group, but there have been significant changes in the purchasing preferences of the latter group.