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Ask an Expert – Is My Husband’s Life Insurance Enough?

Answered By

Heidi Prom - Financial Counselor - heidiprom@icloud.com

Question

I'm a stay at home mom. My husband has life insurance through work and we did purchase an additional policy for him.

Since I don’t work, I don't have any life insurance. But should I?

Answer

Yes! You should have life insurance! Let’s talk about this for a moment. Just because you're a stay at home mom, doesn’t mean that what you do is not valuable.

First, let’s consider that you are going to live a long and healthy life! The purchase of whole life or a permanent life insurance policy can provide a living benefit that would allow you to utilize the cash value for benefits that include funding a child's education, helping to buy a new home or car, or paying for a wedding, as well as providing a valuable income supplement for your retirement. There are many advantages of life insurance for the living!

And, consider that while your husband may have insurance through work, it is most likely a term policy that has no value or is not portable for you to take over if he were to leave his company. This is something you need to check out! What exactly does he have, is it portable (movable to you), and is it keeping pace with your family’s financial needs over time?

A stay-at-home mother is worth approximately $143,000.

Now let’s get serious and think about what would happen if you weren’t around anymore to continue to do what you do for your family? Who would replace you, and how would that happen? You are indispensable!

Most likely, your husband would have to find someone to fill in to perform the very valuable roles that you play for your family. While your presence, love, and values may be gone, a family needs to be cared for while your husband continues to work. Would your husband be able to afford to quit his job to raise your children? Would he be able to afford to hire someone to take over your responsibilities?

In most cases, no. And despite the fact that he may remarry at some point, your loss would create a huge void in fulfilling your family’s needs. Life insurance for you would assure that someone might be able to be hired to fulfill some of the everyday duties you perform as a mother and caretaker.

In addition, it could be used to make sure that your children’s lifestyle would remain as is, in the same home, and in ways that might continue or create a sense of normalcy after such a devastating loss. Consider that life insurance can be called ‘love’ insurance. It can be used in a host of ways to improve the life of your children and help make the goals and dreams you have for your family a reality, even in your absence. Life insurance is a way in which you can create a legacy that would continue when you’re gone.

And if this doesn’t resonate with you, consider the 2017 Salary.com survey that valued a stay-at-home mother’s worth at approximately $143,000. We know we are worth infinitely more, but that takes into consideration hiring someone to perform most of the duties that we so adeptly take care of on a daily basis. Food for thought but the bottom line is that you need it and so does your family. Life insurance = love insurance.

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