We all know that being a stay-at-home mother, is probably the hardest job in the world. You are taking care of every aspect of your child’s life, and are the ‘glue’ that holds your family together. The daily chores never end, and there aren’t enough hours in the day.
But why is there a misconception that stay-at-home Mother’s don’t need life insurance? This is one of the biggest myths that exist in the Life Insurance Industry.
According to Data reviewed by Forbes, there are a little over 12 million Mothers who are considered stay-at-home parents. Many studies have also shown that the work done by a stay-at-home parent is well over $100,000. If something happened to you, how would your family replace this value of services you provide and continue the same standard of living? That’s where life insurance comes into play, and why it’s so important.
Let’s look at some statistics on Life Insurance.
Below are some updated statistics, courtesy of LIMRA’s 2017 study:
Why do Americans own life insurance?
- More than one-third of all households would feel adverse financial impacts within one month if a primary wage earner died.
- The top three reasons Americans give for owning life insurance in 2018:
- Cover burial and final expenses
- Help replace lost wages/income of a wage earner
- Transfer wealth or leave an inheritance
What prevents people from owning life insurance?
The top three reasons people do not buy (or do not buy more) life insurance:
- It is too expensive
- Other financial priorities
- They feel they won’t medically qualify for life insurance. Example: Diabetics feel they won’t qualify for life insurance. This is not true! Life insurance with Diabetes is easily obtained, and affordable.
Why is life insurance necessary for stay at home mothers?
One question we would always have you ask yourself is: What would happen if you weren’t there to help raise your child, and how would your family adjust? There are so many expenses that come with raising a child that your family would have to address without you. Life insurance is recommended to address this, and to protect your family.
Here are some sample expenses that your family would have to address if you were no longer there to care for your child:
- Day Care Expenses-The cost for one child, to be in daycare from age 18 months thru age 5 ranges from $15000 to $40000. Is this something your family could afford without Life Insurance???
- Current Debt-Many stay-at-home mothers didn’t plan on this career. Many of them went to college, have multiple degrees, and unfortunately, student loans. If you were to pass away, your family would still be obligated to pay for this debt. A life insurance policy would be an efficient way to protect yourself, and to cover this debt obligation.
- Future Earnings-Perhaps being a stay-at-home mother is a short term career. Maybe you plan on getting back into the work force at a later day. If you were to pass away, your family may miss out on 20-50 years’ worth of income. This financial figure could be anywhere from $500,000 to $10,000,000 in lost income. Life insurance is a great way to protect future earnings.
What is the life insurance process, and how easy is it???
Life insurance has never been easier to purchase. Depending on your overall health, and amount of life insurance you need, you’ll more than likely qualify for policies that do not require medical exams.
Ideally, you’d want to speak with an insurance agent, discuss your goals and financial objectives, and they’ll be able to guide you to the correct products and insurance companies. Often times, an initial phone call would take 5 minutes, and from there, an agent could provide you with all the information you’d need.
If applying for a non-medical exam policy, the application process would take about 10 minutes to complete, and then 24-to-48 hours for an underwriting decision. Life insurance companies have come a long ways, and are making it convenient for people to obtain.
Life insurance rates are also at an all-time low. It’s never been more affordable. This is another reason why people should not put off this important financial protection for their family.
Protecting your Family Financially
Nobody likes to think about Death, or leaving their family in a poor financial situation. However, life insurance is an important discussion to have, from time to time. Life insurance is designed to provide you with peace of mind, knowing that should something happen to you, your family will not suffer financially.
You do not want to put this valuable coverage off, as we don’t know what tomorrow brings. Like we discussed, it’s never been easier to take out coverage, and the rates are probably less expensive then you imagine.