Life insurance for women explained

What is life insurance for women?

Women’s life insurance is cover for women that pays out if the worst should happen, if you were to pass away your loved ones would benefit. This money could be used for funeral expenses, to help pay off a mortgage, or it could make up for lost earnings. It works in the same way it does for men. 

Why do women need life insurance?

There are many reasons to take out life insurance as a female. Primarily it means your dependants would be financially protected if you passed away. Receiving a lump sum payout that could help cover living expenses.

If you work, your family may depend on your income and if that income disappeared, they might struggle. Life insurance for women could help ease the financial burden caused by a sudden loss of income. 

If your partner is the main income earner, women’s life insurance is still worth considering. If you left a working partner and children behind, they would have to cover any extra costs. In certain circumstances, childcare support might be needed. Having life insurance would help pay for this.

Life insurance policy can be tailored to your circumstances. Say you have children, you could choose a policy that would put the payout into a trust. Then you could decide how the money is used. For example, your children could be given a monthly payment until they turned 18 or you could set it up so the payment would clear your mortgage. They’d then be able to stay on in the family home. 

Learn more: Is it worth having life insurance? 

What life insurance products are available to women?

Women’s life insurance plans are the same as those available to men. But, depending on your circumstances, you might choose a different type of cover.

Individual life insurance policies let you amend your beneficiaries over time. If you separate from a life partner, you’d be able to change the beneficiary so the money goes to your children or someone else. 

How much life cover do women need?

Deciding how much life insurance you need as a woman depends on your circumstances and current financial situation. When applying for insurance, you’ll be asked to choose the amount of cover you want. The more cover you ask for, the higher your monthly premiums.

To work out how much cover you need, spend some time looking at your finances. This includes your debts (such as your mortgage). It also includes your average living costs. For example, food, bills, rent and children’s hobbies. You might also want to set aside money to cover funeral expenses.

If you’re in a relationship, consider your partner’s income. If you were no longer around, how much money would they need to maintain their current standard of living? 

If you have children, you might find it useful to calculate your yearly costs, then multiply this by the number of years till they turn 18. Doing this can be helpful when deciding on the level of cover you’d want for supporting them, until they can financially support themselves. 

When should women invest in life insurance?

Women’s life insurance costs less the younger you are when you take it out. Younger people tend to be in better health and less susceptible to certain illnesses, so insurers charge less.

Having you first child may make you start to think about life insurance. This then gives you the peace of mind that they would have financial cover whatever happened.

If you are the primary source of income in your family, it’s also worth thinking about life insurance for women. This means your surviving partner could continue looking after the home and your children. They wouldn’t have to go out to work right away.

Last updated: 17 October 2024

*Vitality Claims and Benefits Report, 2024