Four Life Insurance Beliefs that Sabotage Your Financial Safety Net:

ROCK ISLAND, Ill., Sept. 10, 2014 /PRNewswire/ -- September is Life Insurance Awareness Month. And while women are the sole or primary breadwinners in a record 40 percent of U.S. households[1], women's life insurance coverage is only 69 percent of the average coverage on men.[2] "Every woman needs to stop, take a moment and consider how important it is to protect her income and the value of what she provides at home in the event something would happen to her or her spouse," urges Cynthia Tidwell, President/CEO of Royal Neighbors of America, one of the largest women-led insurers in the United States. "Life insurance can help replace your salary, pay off a mortgage, cover childcare expenses, or protect college dreams if you die prematurely."

1. "I don't work or earn as much money as my spouse. I don't need life insurance." Wives and mothers have worth, and life insurance can help replace your lost salary or all the things you do for the family as a stay-at-home mom. Term insurance is an economical option for families. Term insurance provides coverage at a fixed premium amount for a specific time period. It is an affordable choice to protect assets such as your home and can provide funds until your family gets back on its financial feet. Learn more why women need life insurance.

2. "Life insurance is just for paying for funerals, right?" The fact is life insurance not only pays for funerals but can also help offset daily expenses, protect your current lifestyle, or ensure your children's college dreams still come true. According to life insurance industry figures, one in three U.S. households has no life insurance at all. For those that do, they only own enough on average to replace household income for 3.5 years. The recommended industry rule of thumb starts at twice that from 7-10 years.[3]

3. "I'm too young for life insurance. It's for older people with kids."
The fact is, purchasing life insurance for yourself or your children at a younger age means you are buying less expensive coverage – and that coverage can financially protect you against future illnesses that may make you ineligible for coverage later in life. Consider purchasing permanent coverage (whole life) because premiums may be more affordable and will build cash value, or look for economical term policies that can be converted to more permanent insurance no matter what happens to your health.

4. "Life insurance is too complicated. I have no idea what to buy."
The fact is, women do need to get educated, so take the first step. Royal Neighbors offers an online tool to help you calculate how much insurance you may need to stay financially secure, depending on your age, income, and current expenses. It also explains the different types of coverage and what might fit your needs best. 

Read NBC's Today Financial Editor Jean Chatzky's blog on life insurance

Royal Neighbors of America, one of the nation's largest women-led life insurance organizations, empowers women to meet the needs of their families with annuities and life insurance products such as whole life, term, final expense, and universal life. With assets over $868 million and life insurance in force totaling more than $2.7 billion as of Dec. 31, 2013, Royal Neighbors has the financial strength and stability to ensure its nearly 200,000 members are protected when the expected, and unexpected, happen. In addition to insurance products, Royal Neighbors provides member benefits at no additional cost which currently include scholarship opportunities, health and retail discounts, and participation in volunteer activities that give back to communities through the organization's local chapters. Royal Neighbors' philanthropic efforts are dedicated to changing women's lives through its national programs, including the Nation of Neighbors^SM Program, and through the Royal Neighbors Foundation, a 501(c)(3) public charity.

Royal Neighbors is headquartered in Rock Island, IL, with a branch office in Mesa, AZ. For more information, visit www.royalneighbors.org or call (800) 627-4762.

[1] Pew Research Center Analysis and Social Trends, 2013
[2] LIMRA, Facts About Life, 2013
[3] LIMRA, Trillion Dollar Baby – Growing Up: The Sales Potential of the U.S. Underinsured Life Insurance Market, 2011

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SOURCE Royal Neighbors of America