You wouldn’t believe the number of times I’ve heard families say, “mom doesn’t need as much life insurance as dad because she is a stay-at-home mom” or because “she’s not the primary breadwinner.” In my thirteen years as a financial advisor, I’ve seen too many instances where families are financially devastated by this misunderstood notion. The fact is that many times you can insure mom for a minimal cost, while protecting your family from financial hardship. Here’s why you should consider life insurance for mom right away:
1. Mom is worth more than you think! According to a 2016 “Mom Salary” survey by salary.com, today’s stay-at-home mom is worth $143,102 per year when you consider her hours worked and the amount of comparable compensation received by people doing similar jobs. Not only does mom fill the role of janitor, taxi driver, accountant, academic advisor, nutritionist, and at least 26 other official job titles, but she works about 92 hours per week.
You can’t underestimate the amount it would take to replace mom if she were no longer around. As terrible as that is to think about, Indeed.com indicates the average father in Alabama would spend $15.85 per hour to hire someone to help replace her. That’s nearly $33,000 per year which only factors in childcare, not household chores or anything else mom does! Depending on the age of your children, the total price tag for childcare could add up to almost $800,000. That’s reason enough to make sure she’s covered.
2. Life insurance replaces income. Women who work outside the home provide valuable financial support for their families. A loss of that income could certainly impact surviving family members’ ability to maintain their current standard of living or her spouse’s ability to retire if mom’s income can no longer be saved for the future.
3. Who wants to leave debt to their loved ones? Most families have a mortgage, two car payments, and credit card debt. Putting the pieces of life back together after the death of a mom is hard enough without financial woes. Life insurance can be a cost-effective way of making sure families aren’t burdened with debt and are setup for future financial success.
It’s definitely not a fun topic to think about, but it’s necessary. I’d like to help you start the conversation and determine how much insurance you need. Feel free to reach out to me if you need an independent life or long-term care insurance specialist to help you protect your family.
Originally published in the September 2017 issue of Hills & Castles magazine.