Over time, people have recognized the differing needs individuals have when it comes to estate planning. While they may know that no two people will have the exact same estate plan, depending on the person’s livelihood, relationship with loved ones, and even their sex. This is surprising to most individuals. For example, women may have some unique estate planning needs that most men do not have. These needs extend to all aspects of the estate planning arena, including retirement needs, caretaking responsibilities, and end-of-life care. Below are some common issues that women face when going through the estate planning process, along with how life insurance may be the solution to these difficulties.
One such struggle with estate planning that women face is the earning power challenges that make it difficult to plan for retirement. Considering women still only earn approximately 82 cents for every dollar a man makes—with the amount being lower for women of color—this makes it even more essential to plan ahead for the future. Without adequate savings for retirement, women may feel they need to work even longer in order to be financially secure in their final years of life.
In some families, women are often the primary caregiver—both for children and aging parents. According to the American Association for Long-Term Care Insurance, 75 percent of in-home care providers for older individuals are women—and most of these are daughters. This often has financial repercussions because women often take on this responsibility at the expense of a job with an income—or a higher income.
Additionally, women with caregiving responsibilities must include continued care provisions in their estate plans. If they get too sick and can no longer take care of their dependent family members, they should name a new caretaker.
How Can Life Insurance Help with These Problems?
Life insurance policies can often assist with the financial aspects of estate planning. For women who are worried they do not have enough assets to pass on to future generations, they can name their loved ones as beneficiaries on their life insurance policies. So, if the person passes away, they will receive the policy amount. This can also be useful because these loved ones can use this money to pay for long-term care for the dependents the individual was caring for. Additionally, life insurance benefits can be used for retirement too. Instead of passing along the policy amount to others after their death, the woman can use the cash value of the policy for additional retirement income.
Because women face unique estate planning needs, women starting the estate planning process should contact an experienced attorney as soon as possible.
Contact a Houston Estate Planning Attorney
If you or a loved one needs assistance drafting an estate plan, reach out to the Houston estate planning attorneys at McCulloch & Miller, PLLC. With decades of experience, we have advised clients and created estate plans based on a diverse set of needs. This means we will be knowledgeable enough to assist you with the process, no matter your specific wants and needs. To schedule a free, initial consultation and to speak with one of our attorneys, give us a call today at 713-333-8900.