Why Is Insurance Necessary?

Insurance did not cover risks. It is beneficial to policyholders because it provides them financial security to recover from loss. When buying an insurance policy, a person is essentially declaring that he is willing to pay a certain amount of money to ensure that, should a specific, usually financially injurious event transpire, she or her loved ones would be financially cared for. In many cases, buying insurance prevents a bad situation from becoming much worse. For instance, health insurance can save a person�s life by allowing him access to life-saving medical treatments that would otherwise be unaffordable.

Insurance also help in  retirement plan. We all need to make investments to insure our financial futures. There is no question that, on a very basic level, financial planning tools and knowledge are needs of both genders. But these tools and knowledge need to be used differently by women.

Women face some basic realities which are very different than those faced by men

Women still earn 52% less than men doing comparable jobs in the workplace;

Women live an average of 7 years longer than men;

Almost 20% of women are saving nothing for retirement;

Over 61% of women living alone after age 65 have incomes under $15,000;

71% of women over the age of 65 have no pension;

The median annual income for women with a pension is less than $5,000;

Over 58% of female baby boomers have less than $10,000 saved in a pension plan or 401(k) plan;

57% of women aged 65 and older are single;

33% of widowed women become widows by age 50 and nearly 46% are widowed before age 65;

72% of nursing home residents are women;

Women have a much greater need than men to address their financial futures, simply because they are likely to live longer. Women need to look at and respond to that reality. Women need to take control and design their own financial futures.