Your financial plan could be incomplete if you have not incorporated life insurance for a stay at home Mom in your family. Some financial advisors do not feel stay at home moms need life insurance coverage because they do not bring income home in the form of a paycheck. I understand this argument, but I do not agree with it.
I have seen the impact the death of a stay at home parent can have on a family both emotionally and financially. Although we can’t do anything to help the emotional burden this will pose, we can provide a financial net. This financial net best comes in the form of life insurance for a stay at home mom.
The Argument Against Life Insurance
Some popular national financial advisors have recently suggest stay at home spouses do not need to purchase life insurance. The argument these spokespeople support is stay at home Moms do not need life insurance coverage because they are not going into the workplace and bringing home a paycheck. It is true, one of the main reasons people need life insurance is to protect their income.
However this is not the only reason people apply for life insurance. Life insurance exists for many other reasons, not just to protect a paycheck. These financial advisors clearly have not seen the financial impact which occurs to parents when they lose their stay at home spouse. Unless you have significant wealth which can be accessible for years following the loss of a spouse, I would suggest life insurance to be your next best option.
Supporting Life Insurance For A Stay At Home Mom
If you have seen the misfortune of a family losing its breadwinner, or the stay at home mom, you most likely recognize the importance of life insurance. Everyone recognizes the need for life insurance on the spouse who goes out and earns an income, but why not the person who takes care of the children, the home, and provides significant value to the family unit.
If your family has a stay at home Mom then they are probably staying at home for one reason or another. Many mothers choose to stay at home in order to perform child care duties. As I am sure you are aware, child care services are not cheap no matter how you slice it. If you are not aware of the cost of child care I have broken it down for you.
According to BabyCenter, the average cost of daycare in the United States is $11,666 per year (or $972) per month. Not only are you paying for this service, but you are most likely not getting the level of care which a Mom can provide. I don’t know about you, but most people don’t have an extra $1000 in the budget for child care services when you aren’t planning for them. If you have a new born you could be looking for at least 5 years of care, or over $58,000. Why would you not want to protect this value the stay at home Mom is providing to the family with life insurance?
Other Financial Impacts
In the event of the passing of a stay at home Mom, it doesn’t just boil down to the financial impact of childcare. For the spouse, and the children especially, the passing of a mother can have pose a huge emotional burden. It is not unusual for these family members to require counseling services and as you are probably aware of these are not free.
Even though nobody wants to think about it, you still need to need consider final expenses if a tragedy occurs. Final expenses can climb well over $10,000 not including medical expenses. Once again, I doubt most families have this amount of money saved up in a rainy day fund. And again, life insurance can come to the rescue to cover this need as well.
Although I recognize the opinions of those who feel stay at home Mom’s do not need life insurance, I do not agree with their logic. They have only looked at a small piece of the puzzle, income. Those who fail to recognize the important of life insurance for stay at home Mom neglect all of the other factors and contributions to the family unit.
If you are curious how affordable life insurance really is, you can get a free life insurance quotes in one place through our online quoter. Whether you feel stay at home Mom’s need life insurance is up to you, but the important thing is you recognize the financial importance of a stay at home Mom.