Women live longer, earn less over their lifetimes, and are more likely to take career breaks for caregiving. Yet, you may be surprised to learn that when it comes to life insurance for women, studies show they are less likely to be insured than men.

This coverage gap isn’t just a minor oversight; it’s a critical risk factor in women’s retirement planning. While many women focus on traditional savings and investments, life insurance can play a pivotal role in securing financial independence. Unfortunately, many don’t realize the full potential of life insurance until it’s too late.

Why Women Have Less Life Insurance

It’s clear there is a significant disparity in coverage between men and women. Current data from LIMRA and Life Happens reveals that women hold only 46% of life insurance policies compared to 57% by men.

What’s driving this coverage gap? In our experience, it mostly comes down to:

• Underestimating the need – Many assume life insurance is only necessary for primary earners, overlooking its role in securing financial stability.
• Income gaps and career breaks – Time away from the workforce for caregiving often results in reduced employer-sponsored life insurance coverage and income.
• Relying on a spouse’s policy – Many women assume their spouse’s life insurance is enough—without considering what happens if they outlive said spouse.
• Deprioritizing due to budget and time – Life insurance can seem like an unnecessary expense for the future when juggling other financial priorities happening right now.

Challenges for Women Preparing for Retirement

Women outlive men by an average of five to six years, meaning they need to finance more years in retirement — that’s more time relying on savings, investments, and other financial resources.

Women are also more likely to require long-term care services. With annual nursing home expenses exceeding $100,000, this represents a significant risk to retirement capital without proper protection strategies in place.

These factors can make it difficult to plan for the future or determine what the best retirement age is for women like yourself. Your Medicare eligibility begins at age 65, but you may not be ready then, or you may want to retire sooner. There’s no one-size-fits all approach, it depends on your health, life circumstances, and financial preparedness. However, having the right life insurance coverage in place can help provide financial security and peace of mind about your future needs, so you can feel prepared whenever you do decide to finally retire.

How Women Can Use Life Insurance for Retirement Planning

Many people think of life insurance purely as a tool for protecting dependents, but it can also be a powerful retirement planning asset. So, how do women use life insurance for retirement?

Many leverage its benefits to help:

• Provide Retirement Income – Some permanent life insurance policies build cash value over time, which can supplement savings.

• Fund Long-Term Care Expenses – Women are twice as likely as men to need long-term care. A hybrid life insurance policy with long-term care benefits can help cover these costs.
• Create a Tax-Efficient Legacy – Life insurance provides a way to transfer wealth efficiently while minimizing tax burdens for beneficiaries.

For single women in America preparing for retirement, life insurance can serve as an extra layer of security. Without a spouse’s financial support, single women must rely entirely on savings, investments, and other assets—a well-structured policy can supplement retirement income and serve as a safety net.

The Importance of Reviewing Life Insurance Policies

Many people buy a policy, put it in a drawer, and never look at it again. But when they reach retirement, they’re shocked to find that their coverage is underperforming or expiring right when they need it the most.

This was the case for one of our clients, a 66-year-old woman who assumed her life insurance policy would last through retirement. But when she finally had it reviewed, she realized it was set to expire in five years, leaving her with zero coverage in her 70s. Fortunately, she was still in good health and was able to apply for a permanent policy with long-term care benefits.

Regular policy reviews can help ensure your coverage aligns with your evolving financial needs.  If you’re interested in having your existing policy evaluated, a PCA advisor can help review your current goals and determine if you need to adjust your strategy.

Integrating Life Insurance into a Holistic Retirement Plan

Life insurance is a valuable tool, but it should be integrated into your comprehensive financial plan that includes what we consider the five key pillars of wealth management:

1. Financial Planning – Ensuring long-term financial security.
2. Asset Management – Growing and protecting wealth.
3. Tax Management – Using life insurance as a tax-efficient tool.
4. Protection Planning – Safeguarding financial well-being.
5. Legacy Planning – Passing wealth efficiently to future generations.

Start Building Your Personalized Retirement Plan

Whether you’re married, single, or nearing retirement, working with a financial professional can help you navigate life insurance and other critical strategies.

At Prosperity Capital Advisors, we specialize in creating personalized protection strategies aligned with individual retirement goals. Our team can help you:

• Evaluate your current coverage adequacy
• Identify protection gaps
• Integrate insurance strategies with retirement planning
• Implement tax-efficient wealth transfer solutions

Ready to optimize your retirement protection strategy? Find a PCA advisor near you and start building a financial future with confidence.