7 Tips For Single Women To Purchase Term Life Insurance Cost Effectively

April 26, 2019
20 Comments

Last Updated on March 7, 2021 by NandiNN

Term Life Insurance Tips

Thinking of getting term life insurance?

In a day and age like ours, financial independence is a must-have.

The cost of living is twice or even thrice as expensive as it used to be just a few years ago, and people have become more and more competitive at workplaces.

On the other hand, financial institutions have also made it easier for people to access monetary instruments like bonds and insurance, due to the significant rise in demand.

For many people, an investment like life insurance is more about securing the lives of their family members in the event that they pass away or are unable to provide for them anymore, but is life insurance only a necessity for men?

According to a recent survey, 85% of the adult population in the US agreed that life insurance is an absolute necessity for any adult, but only 62% of that population agreed to have actually made the investment.

While this is a significant rise in numbers since a few decades ago, there can still be a lot more improvement.

The survey further broke down the statistics to reveal another surprising fact – Out of the 62% that did opt for life insurance, only 24% of them were women.

This is surprising because the ratio of working men to women has become a lot more balanced in the past decade, which means women need insurance and can afford to purchase it just as much as their male counterparts.

Many single women also today rely on their own source of income and even provide for their aged family members.

In such a scenario, purchasing life insurance might seem like a burden or an unnecessary overhead, but that’s not the case.

Insurance can be a very necessary backup plan or safety a single woman could use, in times of sudden financial need.

There are several financial and whole life insurance companies that offer perks for women who opt for coverage.

A single, working woman can easily put aside a small percentage of her income to pay for insurance premiums because she still doesn’t have the worry about expenses for her kids, her own household yet.

And that’s why insurance is such a smart option.

Before we get started on term life insurance, we did want you to follow us on Facebook for more awesome ideas on saving or making more money. You can also follow us on Instagram for more tips.

We also wanted to take the opportunity to let you know that we use Affiliate links on some of our blog posts. This means that we could make a commission if you click on an affiliate link and purchase something. Read our full disclosure and blog policy for more information.

What Is Term Insurance

Term Insurance or Term life insurance is an insurance policy that provides coverage for a specific period of time. For example, it could be given out for a set amount of years, or time period.

This is usually also for a fixed rate and after the term is up, you will need to make new arrangements.

If the person happens to die within the coverage time, your benefit will be paid to the beneficiary or the person listed.

Why Buy Term Life Insurance?

Term insurance is generally more affordable and is less complicated than other life insurance policies.

As a single woman with little no obligation, term life insurance is better suited for you because much cheaper than any insurance, and because it is cheaper, if you choose to cancel, you will not lose a lot of money.

It is also a great idea to buy term insurance to ensure your dependents do not have to worry about any of your debts if you have any if something does happen to you, and they will also have financial help to cover some things.

As always, it is always a good idea to have an “in case of an emergency family plan” should anything happen!

Cost-Effective Term Life Insurance Tips

So how does one go about picking the most affordable and cost-effective insurance plan?

Let’s have a look:

1. Pick Term Life Insurance

For a single woman who can’t afford to pay a larger premium amount, term insurance is always the safest best.

Permanent life insurance has its own benefits, no doubt, but it doesn’t make sense for someone who might be looking at the withdrawal of the policy amount earlier.

With term life insurance, there are options for the policy owner to withdraw the accumulated policy amount before they pass away or the term has ended.

This amount would be a considerably large sum and can help with bailing one out of an emergency situation.

2. Do Some Research

Choosing to purchase a life insurance plan without actually knowing much about it gives the insurance agency a chance to scam you as a client or suggest a plan that might not actually work in your favour.

Every single woman should make the effort to get onto the internet and make use of all the information available to learn more about term life insurance and what it entails.

There are several sites available online where one can find out how the procedure of buying a term life insurance plan works, what the price range is, what the eligibility criteria are, and so much more.

Knowing all of this before reaching out to a financial institution helps with making a wider choice with the policy, and also doesn’t give the company any levy to choose the wrong policy or one that is too expensive with not too many benefits.

You can also visit a personal finance person and learn a few tips and tricks.

3. Get multiple quotes

Step two would be to visit and talk to not one or two, but multiple insurance providers.

This helps with getting a better idea of what the average price range for a policy is, how much coverage one should go for, what the cheapest rate of interest in the market is and also what suits their budget the best.

Now, competitive quotes from different providers can help you understand how much actual value you’re getting for the money you will be spending.

That being said, if one is familiar with or has been working with the same bank for a while, then they might be the best first choice to consider.

Banks are known to give preferential quotes to existing, long-term customers in order to maintain loyalty.

4. Avoid procrastinating

“I’ll think about it next year” is what some people say when asked about whether or not they have insurance.

Life insurance especially works out better the earlier it’s taken. It’s a misconception that only middle-aged or older people can take up a policy; life insurance taken earlier has the very obvious benefit of time.

It gives you a long time to pay the premium, your premium amount builds up over time, and you’re also providing for your future family needs.

Experts say that even young professionals who are just starting out can easily take up a life insurance policy, and choose to increase their premium once their income increases.

When you make the mistake of starting too late, there are a number of benefits that you eventually miss out on, time being the most significant one of them.

5. Knowing the benefits

There are many women-centric policies available that give special subsidies and interest rates for women only.

As a single woman, it’s important to know what kind of benefits and exemptions one can make the most of.

In recent times the economy has been trying its best to boost the position of women, which is why so many companies urge women to invest in insurance policies earlier on in life and also offer them exciting rates and schemes.

There are two ways to get to know about this, either does your own market research or go straight to institutions and ask them for term policies for women.

6. Income for retirement

In many cases, life insurance can also be counted on as a source of income post-retirement.

Since term insurance gives the option of withdrawal before the death benefit is claimed, the entire amount can be withdrawn and used as a post-retirement fund.

Of course, this would mean that the policy has been allowed to mature for a longer period of time so that there’s a substantial amount to withdraw whenever it is necessary.

Single women will, at some point, decide to settle down and start a family. Not many of them work till the age of retirement, which is why having a backup with insurance is a must.

The smart thing to do is to go for a longer-term so that the accumulated amount is higher.

7. Covering for health

Women are biologically more susceptible to health and hormone issues, and this is a fact.

They go through various stages of hormonal imbalances and even have issues with conceiving when they try to.

Medical expenses for such problems can skyrocket, and this is when life insurance might just come in handy.

As mentioned earlier, a term life insurance policy can be withdrawn from an earlier date as well, and even if one doesn’t have a health insurance policy, withdrawing from life insurance would be able to cover a greater expense.

As women get older, single or not, they would require a solid backup to tackle health issues if they do arise.

Final Thoughts

Considering how competitive the insurance market is currently, it’s probably the perfect time for single women to make the most of it and choose the best policy for themselves.

Whatever the criteria might be, whether it’s only cost-effectiveness or the longevity and reliability of the policy, there are plenty of schemes to choose from!

Are you ready to purchase Term Life Insurance? Leave us a comment below!

Read this next:

Find more amazing Lifestyle Stories here!

If you enjoyed our blog we would like to have you join our email list and receive weekly money-making tips, you can join now! Don’t forget to join our Private Facebook page. The page is created to share your work, pitch your services and learn from other experienced bloggers!

***We would like to note that this post and most posts on our blog may contain affiliate links. This means that if you purchase something that has an affiliate link, we will get a commission from it. Not all items recommended on our site are affiliate links. We only recommend items that we have used and tried. These items have brought us much success and we highly recommend them to you in order to be successful. Thank you for your trust!