It’s not always obvious why a stay-at-home mom should need life insurance. After all, you don’t have a job outside the house. You’re not “working”. You’re not bringing in the family income, so why should you need life cover? But losing you as a mom would not only cause huge emotional pain, it would also be financially disastrous.
Here’s why you need to consider a life insurance policy as a stay-at-home mom.
1. Because You’re Worth It
Just because you don’t get paid a salary, it doesn’t mean you don’t contribute to the income of your family. You’re actually probably due a pay rise, when you think about it. Salary.com put the annual salary of a stay-at-home mom at $178,201 in 2019. And that’s bound to have risen dramatically since then. Their thought-provoking infographic gives a list of hybrid job titles a stay-at-home mom can legitimately use, including interior designer, event planner, plumber, coach, and judge/magistrate. You do so much in the home, your contribution to the running of the household and to everyone’s wellbeing is invaluable.
2. Your Insurance Covers Household Expenses and Childcare
As you can see above, you contribute an immense amount to the family. Just because you aren’t employed, doesn’t mean you aren’t working from home. You obviously can’t be replaced, but your family may have to hire someone to clean, cook, or look after the children if you were to die. Childcare is a massive expense over the years. If you are not there to look after your kids, your partner (who will probably still continue to go to work) will need to pay for daycare or a nanny. After-school care is also expensive in the long run. Your partner may also need to look for evening care or babysitting services if they travel overnight for work. Look for a policy that includes cover for essential childcare, so your kids are protected in the event of your loss.
3. You’re Young, Fit and Healthy
You may think there is little point in you applying for life insurance when your partner was denied life insurance, even with a solid job and income. But it’s not just about looking at earnings and job titles. You may be a better insurance risk than your partner, especially if you keep yourself fit and healthy running about after the kids all day. Life insurance for younger, healthier people tends to be cheaper than that for older people and those with risk factors. So if you’re a young stay-at-home mom, now could be the ideal time to sign up.
4. Insurance Pays For Education
Do you homeschool your kids as a stay-at-home mom? Losing you will be devastating. If you don’t want to send your children to public school, private education will be necessary. This is, of course, costly. Life insurance will be valuable for this reason. And look for policies that cover college education, since this has a high price tag for all parents. You won’t be able to pay for your child’s entire college career with a life insurance policy, but you may be able to cushion the blow somewhat.
5. You Want to Leave a Legacy For Your Children
Healthy financial planning for your child’s future is vital. You want to set your children up for life, that’s any parent’s wish. This includes providing for their wedding, their first car, and their inheritance. Your inheritance for your family doesn’t have to add up to millions. But a small amount can make a huge difference to their lives when you are not around. Slowly adding to a life insurance policy while you are a stay-at-home mom increases your nest egg and ensures that, if the worst happens, you have something to give your dependents.
6. Because You Don’t Want to Leave a Funeral Bill
Your family will have enough to deal with. You don’t want to saddle them with an additional funeral bill. Funerals cost thousands – something that many families overlook. Your policy can provide the money to pay for this necessary expense and make one less thing for your partner and kids to worry about during a stressful time.
Hopefully, you will live to a ripe old age and be around to see your grandchildren and great-grandchildren grow up. But spending some cash on an insurance policy every month still makes sound financial sense. You never know what may happen. You may think you’re “just” a stay-at-home mom, but you are a vital part of your family unit and you deserve to be protected, too. Even stay-at-home parents need life insurance.