The gender difference: how women view finances and their life insurance options

Senior Resources

It’s no stereotype: women really do control the money in most American households. While men tend to look at the big picture and to be more open to financial risk, it’s the women who are setting and managing family budgets, which often leads them to be make more conservative decisions about their money. When it comes to finances, women are more likely to think long-term and worry about saving money for their future needs.

This impacts how a woman approaches life insurance options. In her 40s, she may buy life insurance because she’s concerned about protecting her family, including paying off her mortgage and financing her children’s college education. If she’s living paycheck to paycheck, she may look for the least expensive policies. If she has a higher income, she may be more inclined to consider a whole life policy. She is probably willing to take a lower return on her money to have long-term protection(?).

Once the kids have graduated college, her attention may shift to paying off debt. With the kids out of the house, a woman in her 50s or early 60s usually has an option of downsizing her living arrangements, so mortgage protection becomes less of a concern. But she’s probably thinking more and more about funding the rest of her life. She could be looking at savings and pension plans, social security, and whether she will need to continue working to supplement her income. With retirement more eminent, she’s most likely less interested in the long-term savings offered by life insurance options and much more interested in a cost-effective term policy that she can re-evaluate in 10 years.

When a woman is past age 65, life insurance takes a back seat to cash flow. She’s probably evaluating how she can afford her lifestyle while potentially living to age 90 or longer. She may not be as concerned about leaving a nest egg for her children, particularly if they are doing well on their own. She could be looking at the best return on her money and how to supplement her current cash flow situation. She’s probably on a fixed income, nervous about inflation. The stock market seems too volatile, so it’s likely she’s avoiding investments that might improve her overall financial picture. Life insurance may not serve much of a purpose at this point in her life.

She would be pleased to discover that she may be able to sell her life insurance policy to help fund her day-to-day living expenses, and perhaps provide her with some extra money to spend on the grandkids.

If you, or someone you know, would like to learn more about options to repurpose a life insurance policy in the secondary market, contact GWG Life to talk with a trusted consultant. Since 2006, GWG Life has paid more than $271 million to seniors for their life insurance policy benefits.

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