Does a stay at home mom need life insurance? The answer is maybe. If you consider yourself wealthy then you might be self insured and you don't need life insurance, otherwise there are reasons to consider life insurance for a stay at home mom.
In this article I’ll cover some reasons why you should consider buying a term life insurance policy, how much life insurance you should buy, and I’ll give some examples of quotes for a term life insurance policy for a 30 year old,40 year old and 50 year old woman. If you would like to get a quote for life insurance you can use our instant online quote calculator right below this paragraph and compare life insurance quotes among over 30 of the best life insurance companies – otherwise keep reading.
No one wants to think about mom dying, but let’s think about all the things that mom does, and ask ourselves a question:
What is the economic value of mom? Although mom doesn’t earn a monthly paycheck, mom’s everyday tasks certainly have value. Here are some questions to ask to see what the economic value of a stay at home mom really is.
If Mom takes care of kids at home, what would it cost to replace that? Would you need to hire a full time nanny, a live in nanny, or a baby-sitter to pick up and watch the kids after school?
Does mom homeschool? If so, would you hire someone else to homeschool your children, or perhaps send them to private school?
Does mom take great care of the home? If so, she may hire someone to clean, or she may do it herself. Would you need to hire someone to clean? Would you need to hire someone to cook, or eat more dinners out with the kids? What is mom’s economic value for taking care of the home?
You may not have thought about it, but if your kids’ mom just died and you work 40-60 hours a week, you may want the option to change the amount of hours you work. Wouldn’t it be great to be in a position to work part time instead of full time and be a father that is there for his kids, especially after mom just died? If mom has life insurance, then you could be in a position where you can take some time off to spend with the kids, or cut your hours so that you can be there for them after school.
So how much life insurance should mom buy? The answer is that it all depends. Expenses for childcare can range between $700-$1500 per month, depending on where you live. Would dad want to cut down his work hours to be home with the kids after school? What would you like your life look to look if this terrible event were to occur?
The bottom line is that Term Life Insurance is cheap. In fact, it could be dirt cheap. So I’ll give some example of pricing for a 30 year old female, a 40 year old female, and a 50 year old female for a $250,000 20 year term life insurance policy. I’ll quote a Preferred Plus non smoker rate, and a Standard rate so that you can see the range of what the potential cost might be (since I don’t know your height/weight, and your current medical status or history). If you would like to compare rates, just use our instant quote tool at the bottom of this blog post.
$12.47 Per Month at Preferred Plus Rates for $250,000 20 year term
$21.22 Per Month at Standard Rates for $250,000 20 year term
$16.19 Per Month at Preferred Plus Rates for $250,000 20 year term
$31.28 Per Month at Standard Rates for $250,000 20 year term
$33.20 Per Month at Preferred Plus Rates for $250,000 20 Year Term
$61.67 Per Month at Standard Rates for $250,000 20 Year Term