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| Stay-at-Home Mom? You're Probably Under-Insured |
Many stay-at-home moms ask for advice and recommendations on how to purchase life insurance protection on their spouse. They talk about their family's financial situation at the time, how frustrating and depressing the life insurance application process can be, and usually end with a self-deprecating statement made by their husbands or deduced on their own, that their value addition to the household is minimal, or worse, negative, because they don't bring any money in.
This self-deprecation is a little alarming and worrisome even at the outset. It's one thing to assume that no real income is being brought in by a stay-at-home mom (or spouse) and therefore, life insurance to replace income is pointless. But it's another thing altogether to gloss over the fact that spouses who stay-at-home work hard day and night to maintain the up keeping of their home. If they aren't bringing in any income, most are doing a painstaking job of spending every penny wisely, which is keeping the money within the home as long as possible.
This is most definitely a case of underestimation.
As a stay-at-home spouse, you're looking after a myriad of needs. Take a week to ascertain what these needs are. Use a pocket book and write them down as you go. At the end of your week, consolidate the list and look up what it would cost your family to replace these needs by a professional. Take into account what it would mean if slightly older children or the surviving spouse were to pitch in to take care of daily chores, but leave them some grieving time and space.
You may face the dilemma of convincing your working spouse that you need life insurance coverage, even if it's grossly inadequate. Traditional families don't like broaching the subject of losing a mother or father that may be pivotal in keeping the family together. This may require patience and tact, but the bottom line is: if a working spouse wants you to be well taken care of if he or she died today, it's reasonable for you to want the same. After all, the death benefit being paid out will go to the surviving (working) spouse and children (if any), which is actually a selfless insistence on your part.
But are you overestimating your current worth?
Some people freak out and start to make calculations based on pricey figures that TV shows and magazine articles seem to come up with. There are wives that freak out because their husbands would not let them get one million dollars in life insurance coverage, just like he had on himself. Life insurance is a sensitive subject; start by getting your basics right. If it costs $30,000 to hire a nanny to care for growing children, it won't cost $30,000 for the rest of their lives! Stay away from making excessive estimates; it pays to sit down and calculate accurate expenses. If you're worried that your concerns will fall on deaf ears, record your calculations and show them to your spouse. Besides appreciating how much effort you took to create the guesstimate, they will realize that in the end, life insurance is bought to protect and safeguard grieving loved ones who have to cope with your loss.
Another important fact to remember is that your working spouse's salary will have to support your life insurance premiums. Your coverage should not put a burden on the family budget.
How to find what you're really worth
Add up all the extra expenses your family would wind up spending if you were not around, such as baby sitters, nannies or daycare facilities. If your children are old enough to take care of themselves, you may be able to save on those costs. But you may have to hire a cook. Meal planning and cooking is a huge part of a family's budget; and if you are not around, your family would probably eat out many times a week or live on take-outs. While we admit many of your responsibilities are irreplaceable. At home, you help handle the odds and ends, such as fixing up jobs, planning family gatherings and events, scheduling their time spent at school, work or play, counseling them and teaching them, and cleaning up after large and small messes. The best part of it all is that you do this on a budget. If you expect your spouse to handle work and home after you're gone, give them some adjustment time. Devastation from grief can take months to get over, and sometimes, even the best jobs cannot wait for that long.You and your husband should discuss whether he would want to cut down his working hours in order to spend time with the family. The loss of income in such cases would need to be included in your coverage.
None of us know what the future may hold. A life insurance policy can not only financially compensate the loss of a loved one, but it can also provide financial relief if you happen to fall terminally ill. If you fall sick, hospital bills can skyrocket, depleting your savings and leave your family encumbered after death. Life insurance proceeds can help settle these as well as funeral expenses. You can also leave behind a portion of your proceeds to your children; an inheritance that can help pay for college tuition when they come of age.
Re-evaluate your life insurance coverage as soon as you can and get the best life insurance rates today, before time and age catch up with you. Opt for inexpensive term life insurance if you're looking for a cheaper variant. It's usually the best choice for stay-at-home spouses supported by a working spouse's salary. Always compare life insurance quotes first before buying anything; to do this, use a free quote engine like the one available on . Life insurance aggregator websites can help you find the best term life insurance rates that could save you up to 70% in annual premiums. Make this yet another reason to convince your working spouse that life insurance on you can be affordable and attainable after all!