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Why home mothers need life insurance 2020!

Several years ago I had an argument with a friend.

He was a high-income lawyer whose wife had taken a break from her career to take care of her four children.

I asked if they had life insurance on her.

He mocked me and said, "No, she's not making any money!" I was really surprised by this considering how busy she was and how many responsibilities fall on her.

After 23 years as a financial advisor and licensed insurance agent, I am no longer surprised. I know how common his opinion is.

Unfortunately, I could not convince him that it was worth buying life insurance from his wife.

Today I hope I can convince you.

Life insurance is not just for providers

Why does anyone need life insurance? I always say as soon as another person is dependent on you, you should think about getting insurance.

Most calculators are designed to help you decide how much you need to start with the question, how much do you earn?

the idea is that if the breadwinner, let's call him father, were to die and thus his income stopped, the death benefit would provide money that the family could use to pay their bills.

I completely agree that the provider must have life insurance. – probably much more than they are doing right now.

But even though Dad has millions of dollars in coverage, it still leaves a big hole in the family's risk management.

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The value of women's unpaid work

The prospect of a insurance needs calculator is not really surprising when you think about the.

Raising children and caring is generally an important task for our society. And yet, even if our culture claims to value the family, such work is consistently undervalued.

This is evident from the low salaries of teachers, childcare workers and care assistants.

Money is an interesting thing.

It's important to survive because that's how we get the things we need – both our most basic needs and the things that make life more fun – often we have to turn the priorities around.

We usually value things based on their price tag. It's a kind of mental shortcut we use, sometimes without knowing it.

A $ 70 bottle of wine must be much better than a $ 17 bottle, right?

So, if a mother's work at home is unpaid, does it really have any value?

Of course it does; it's just a little invisible.

A study by Salary.com valued the home mom's work at a median salary of $ 178,000 per year!

An analysis from Oxfam in 2020 reported that unpaid work by women in the United States would be worth $ 1.5 trillion in 2019, using the minimum hourly wage for their calculations.

And I would argue that mothers should earn much more than the minimum wage!

And yet there is no paycheck, no dollars come into the bank account for all the hours we moms work.

No visual or concrete representation of the crucial value of what we do, which makes it easy to overlook the broader economic plan for the family.

What does it cost to replace a mother?

Now let's imagine the non-working spouse, let's call her mother, is tragic out of the picture.

Of course, the family will be devastated – the emotional cost of losing a parent is real and lasting.

But let's look at the practical daily effects. Who will take up all the jobs that a mother fills in a day, a month, a year? It is as we know a large list.

  • Child care worker
  • Housekeeper
  • Washbasin
  • Driver
  • Shopper for food and everything else
  • Head of child schedules and activities
  • Supervisor of school and homework
  • Medical director, scheduling and foreman 19659053] Bookkeeper and bill payer
  • Travel and event planner
  • Communication specialist
  • And probably 12-25 others I have forgotten!

One person had done all this. And now she's gone. Is it realistic to think that the remaining family members can or will take the step to do all the work?

It would be difficult, especially if the children are young. Dad can work long hours to keep his income.

Unless the extended family enters, they will probably not find anyone who can do everything for free.

So they have to pay – probably more than one person. This naturally increases household expenses with the same income.

And let's face it, most American families do not have much room for maneuver in their cash flow already.

No degree life insurance before state .

What would life insurance allow?

Let us imagine again, that mother is suddenly gone. But this time a big check will arrive in the mail a few weeks later.

Everyone is devastated. Life will never be the same. And there is a pot of money available to help with the logistical problems.

Now it would not be such a stretch to pay someone to do some or all of mom's jobs.

If Dad wanted to cut back on work to do some homework himself, there would be money to replace his income reduction.

Or the insurance control can be used to pay off the mortgage loan and finance university savings accounts, which in turn makes it possible for dad to work less. health services. Money in the bank means that they would not have to deny themselves.

One of my friends took his children out of school on a gigantic journey and even hired a tutor to accompany them so that the boys could keep up with the school after their wife's tragic death.

After witnessing and caring for her long and painful illness, he decided that this would be a calm and binding experience for them.

God forbade both parents to die

Having insurance for mother and father means more assets for the one who enters the role of the guardian / guardian for the children.

It's a huge obligation for someone to take care of, and of course you want to alleviate the financial burden for those who look after your precious children.

Which always allows money choice, options and flexibility. Money is NOT a cure for the situation. It never is.

But having a life insurance policy on the mother can avoid putting a financial disaster on top of the emotional one.

No degree life insurance easy.

Agents not required.

Get a quote and register online without talking to an agent. But we're here if you need us.

Indefinite, expert advice.

Get impartial insurance training from licensed experts and also avoid dubious sales calls.

Coverage in minutes.

You can not get any degree insurance within minutes of receiving your quotes and

How much insurance do you need?

How much insurance should you have? Probably a number that sounds really big.

The answer, as with so many things about money, is "it depends."

What do you want the money to be activated if you were away? Here are some ideas for answering the question:

Do you need outside help?

If the goal is to provide funds to pay for one or more service providers, research what the services cost in your area.

Do not assume that the family will do everything.

Bad things can happen to them too – illness, disability, moving for work, leaving. Maybe your calculation looks something like this:

  • Cleaning once a week +
  • Driving 1 hour per weekday +

  • Supervision 3 hours a week +
  • Food delivery 3 nights a week = Your monthly cost! [19659099] Let's say it amounts to a total of $ 2,400 / month x 12 months per year = $ 28,800 per year.

    How many years would you need these services?

How about paying off your mortgage?

If the goal is to pay off the mortgage to relieve the monthly cost, how much do you owe on the house?

What is the annual invoice for taxes, insurance and maintenance?

How about financing a college savings account?

If the goal is to fund the university's savings accounts, what type of school do you want your children to go to and how much of the bill do you want to cover?

Then you can use a calculator like this to come up with a number.

You can see how the numbers add up quickly.

The really short answer is that it is difficult to have too much.

Most people have too little. (By the way, while doing this exercise, be sure to look at how much you have on your breadwinner spouse as well! It may be time for a refill.)

But isn't life insurance expensive?

Actually no. This is how you think about it. The purpose of insurance is risk management.

It should address a possible event that may be unlikely but which would be financially devastating.

We have homeowners insurance in the event of a house fire or a tree falling through the roof.

Since it would be really expensive to repair or replace our house, we pay a more modest annual cost so that the insurance company helps us pay for these needs, should they arise.

The idea is that for a small known cost today one avoids a huge possible cost in the future. Life insurance plays a similar role.

As with all insurance, of course, we hope you never have to use it. But having it in place is a responsible thing to do – like having seat belts and airbags or child protection for your home.

We hate to talk about money and death

Money is a common cause of stress and friction in marriage. Know that it's normal! And you want to find a way to talk about it anyway.

In addition, we humans do not like to think about our own mortality or possible disaster scenarios.

Many of us stop avoiding measures like getting our wills written and buying life insurance. (Make your will clear if you have not done so !!)

Try to remove emotions from it by focusing on the numbers and the financial risk. Hopefully this article can help.

No degree life insurance easy.

Agents not required.

Get a quote and register online without talking to an agent. But we're here if you need us.

Indefinite, expert advice.

Get impartial insurance training from licensed experts and also avoid dubious sales calls.

Coverage in minutes.

You can not get a degree insurance within minutes of receiving your quotes and

Conclusion – Taking action

Think about what it takes to reimburse all unpaid work you do for your family

See to that you talk regularly with your spouse about money and finances. Part of that conversation should be disaster preparedness.

Just as you replenish food and supplies before a storm, know what you have in place in the event of a disaster .

When talking about the potential bad scenarios, include "what happens if one of us dies?"

Money is not an end in itself. It is a tool that enables us to meet our needs and build the lives we want to live for ourselves and our families.

If you were suddenly no longer here, would you not want choice, options and flexibility for your family?

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