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5 Ways Women use Life Insurance to Meet their Goals

5 Ways Women use Life Insurance to Meet their Goals

August 04, 2022

Like most women, you’re wearing more hats than ever, more people are counting on you, and you still have ambitious goals to reach. What if you had one simple tool to help with it all?


Women today are making significant financial contributions to their families. In fact, 54% of partnered women are their household’s main earner.1 And they’re making a major impact in the business world, as well as in their communities. But with everything they’re juggling, women often forget to put themselves first.


That may be why only 47% of U.S. women are protecting what they’ve built with a life insurance policy.2 Yet life insurance can be part of a modern woman’s flexible financial strategy, helping to protect the success you’ve achieved so far, providing security to your loved ones and offering financial options to meet your personal goals.


If you’re only familiar with life insurance for its death benefit, you may be surprised to learn about the many living benefits a policy can offer, especially if you leverage the cash value that accumulates with permanent life insurance.* Here are five examples to inspire you.


Diversify retirement income

Nearly a quarter of women plan to use life insurance for supplemental retirement income.3 One way to do that during retirement is to take withdrawals from your policy’s cash value during a down market, allowing other investments time to recover. The cash value may also provide a way to postpone taking Social Security benefits, allowing those benefits to grow. Either way, the income from your policy is tax-free.


Close gaps in education expenses

If you’re a parent, you’re probably saving for your children’s college costs. But if you have a funding gap, your policy’s cash value could help cover it, possibly minimizing the need for costly loans. Plus, life insurance offers more funding flexibility than some alternatives, such as 529 plans. For instance, you could use your policy’s cash value to pay off your existing student loans or to fund other schooling needs for your children, like secondary education or a private grade school.


Support an extended personal leave

Two-thirds of unpaid family caregivers are women.4 And as a woman, you’re more likely than a man to put your career, income and retirement savings on pause to provide that care.5 That might mean taking an extended leave to raise children or care for an aging family member or friend. Your policy’s cash value can provide financial support during planned and unplanned events like these and more.


Plan a legacy for your children and grandchildren

A third of women leverage life insurance to transfer wealth to the next generation.3 A policy’s death benefit can cover final expenses without reducing other assets you intend as an inheritance. Leftover funds provide a tax-efficient method of passing wealth to your designated beneficiaries — even a favorite charity. Women are also using life insurance for multi-generational wealth transfer by funding a life insurance policy on their child for the benefit of their grandchildren.


Build a business

Forty-two percent of all U.S. companies are fully or partly owned by women — and nearly 2,000 women-owned businesses start up every year.6 If you’re ready to turn your idea into a real business, your policy’s cash value can help provide capital or act as a source of income while your company gears up. Or you can use it to expand an existing business — purchase equipment, grow inventory or open a new location. Some business owners even use life insurance as part of a tax-advantaged employee retention program or as part of a succession plan.


It's all about flexibility

Just as women today take on many roles, life insurance can serve many purposes — from covering funeral expenses to paying for your son’s down payment to supporting your granddaughter’s college dreams and more. It’s a versatile solution that can add new dimensions to your financial strategy. So go ahead and put yourself first — protect what you have today and where you’ll be tomorrow.


If you’d like to learn more about how life insurance can fit into your financial strategy, let’s talk.


 © The Penn Mutual Life Insurance Company, Philadelphia PA 19172

 *Accessing cash value will reduce your policy death benefit and values, may result in certain fees and charges and may require additional premium payments to maintain coverage. Ask your financial professional for details on accessing your cash value, including how it might impact the coverage guarantees and situations when the values you access could be taxable. Always consult your tax advisor before accessing a policy’s cash value.

This post is for informational purposes only and should not be considered as specific financial, legal or tax advice. Depending on your individual circumstances, the strategies discussed in this presentation may not be appropriate for your situation. The information in this material is not intended as tax or legal advice. Always consult your legal or tax professionals for specific information regarding your individual situation.

1 “Younger Women Are Increasingly Earning the Title of ‘Breadwinner,’” 2021 Wells Fargo survey, reported in Business Wire, March 8, 2021.

2 “Facts About Life 2021,” LIMRA, 2022.

3 “The 2021 Insurance Barometer Study,” LIMRA.

4 “Caregiving in the U.S. 2020,” AARP, National Alliance for Caregiving, May 14, 2020.

5 “Women Bear the Brunt of Elder Caregiving,”, November 2021.

6 “Women in Small Business Statistics in the U.S.,” The Motley Fool, May 18, 2022.