Life insurance policies are an important financial tool to ensure the quality of life for families when the primary breadwinner is no longer able to make income.
In modern society, traditional families in which mothers stay home and take care of children are becoming more normalized. With many women entering the workforce in the last 50 years and challenging the traditional family model in favor of careers, many women are beginning to desire a more traditional life.
Women are now only working part-time or quitting their jobs entirely once their children are born to move into this traditional role as a wife and mothers.
In fact, from 2019- 2021 there was a 60% increase in the number of women choosing to stay home with their children.
Because of this, women provide a vital role in family’s lives, and the care they provide to their children and care of their household is worth considering when planning for your financial future and your future family.
But with this change comes the reality that the cost of living has also increased, and living as a one-income household can be difficult if your finances are not managed properly.
That is why families should purchase a life insurance policy for spouses, even if they are stay-at-home moms and not the primary breadwinners.
The value of a stay-at-home mother
When it comes to all of the daily tasks mothers provide, the list is endless. Childcare, cleaning, cooking, transporting, and educating are just a few of the services that when hired out can have a high monthly cost.
In fact, the yearly cost of a mother’s services is valued as high as $184,820. If a mother was no longer available, you would need that amount of money to provide all of the services she provides.
This is why life insurance is valuable because if you got a policy that covered that amount, you would have the money to provide the service your children need.
With the traditional role of men working as a breadwinner outside of the home, the unexpected death of the spouse that handles the home can be overwhelming to replace the value that she provides.
Purchasing a life insurance policy for both spouses is important because you will be protected in the case one of you is not available to fulfill the roles you have created for your family.
How much insurance?
As mentioned, a stay-at-home mother’s value can be valued at over six figures per year, so it is a good starting point to determine how much life insurance you should get.
According to a study done by economists, the value of work that stay-at-home mothers provide should be at least valued at $37,233.65.
Services like the cost of childcare or housekeeping should be taken into account this amount because these would be the most costly to provide.
The average cost of child care for one child is $12,351.60 per year. Similarly, the annual cost of housekeeping is $7,088.35.
However other expenses should be considered when doing a financial analysis.
Accounting for children’s educational expenses, healthcare expenses, and debt is essential. Although these expenses vary, it is important to include them in your calculation for life insurance because it will prevent you from having to change your lifestyle to pay these bills.
While this amount doesn’t have to be the same as a spouse who is working outside the home, it is important to consider all of these expenses when deciding the death benefits value.
Overall, when it comes to the value of the work that stay-at-home mothers provide, it is priceless. What matters most is a mother’s presence to raise her children. Purchasing a life insurance policy can give your family the peace of mind the services that are related to child care are taken of in the case of the passing of a parent.