Life Insurance’s Role in Women’s Financial Wellness
Women are increasingly taking charge of their financial well-being, despite persistent challenges like the gender wage gap. This article examines financial wellness for women and how life insurance can help them achieve their financial goals.
What is Financial Wellness?
Financial wellness is the feeling of security and freedom when making financial choices, both now and in the future. It profoundly impacts our overall quality of life. When our finances are stable, other aspects of our lives tend to improve. Conversely, financial stress can lead to physical and mental health issues.
To be financially well, you should be able to:
- Manage your daily and monthly finances.
- Prepare for unexpected expenses.
- Stay on track with your long-term goals.
- Have the financial freedom to make choices you enjoy.
Achieving financial wellness involves budgeting, saving, and managing debt to avoid the negative effects of financial stress.
Why Financial Wellness Matters for Women
Women should pay special attention to their financial wellness for several reasons:
Gender Pay Gap: Unfortunately, women still earn less than men. In 2023, women earned approximately $0.83 for every dollar earned by their male counterparts. With women generally earning less over their lifetimes, they face a higher risk of financial insecurity and are more likely to rely on credit cards. Although the gender wage gap is narrowing, it’s estimated to take until 2068 to close at the current rate.
Life Expectancy: While women may earn less, they tend to live longer than men. As of 2022, the life expectancy for women in the U.S. was 80.2 years compared to 74.8 years for men, a difference of 5.4 years. This means women are likely to outlive their spouses. This also means a longer period of living expenses, which can be very expensive.
Career Interruptions: Raising children can impact women’s careers. Many mothers reduce work hours, take career breaks, or forego job opportunities to prioritize their families. This can limit earnings and prevent the ability to save for retirement, negatively impacting a mother’s financial wellness.
Economic Empowerment: Despite the challenges, women are becoming key holders of wealth, with a continued focus on financial literacy and managing their financial wellness.
Take Control of Your Financial Future
Taking control of your finances and striving for your financial well-being is crucial. Life insurance can play a key role in safeguarding the financial future for women.
Exclusive Group Term Life Insurance for Federal Employees
WAEPA has provided exclusive Group Term Life Insurance for Civilian Federal Employees since 1943. WAEPA offers rates calculated for its entire membership and not for individuals. Because of this, members typically save money on premiums as compared to other life insurance policies.
