Life insurance involves the payment of a sum of money to the beneficiary of the insured when they pass away or due to terminal illness.
Many people believe that only breadwinners should have life insurance, seeing as their passing could have a catastrophic effect on their family financially. However, this should not be the case.
Today, the contribution of stay-at-home moms (SAHMs) within families across the globe cannot be overlooked. Their role is undermined because there is no direct financial contribution from them to the household.
However, studies have shown that stay-at-home mothers help enable their families to save up to 35% of their overall income through daily child-rearing and running the household.
This necessitates the need for stay-at-home mothers (SAHM) to have life insurance. Their value within the family unit and in society at large transcends monetary value because their absence could have a devastating impact on their loved ones emotionally and financially.
Some of the reasons stay-at-home mums should have life insurance are:
Financial Stability
Everything that a stay-at-home mother does within their household might seem unimportant because there is no financial compensation for them.
Many families will nosedive financially due to the cost of outsourcing these responsibilities if the stay-at-home mum suddenly becomes terminally ill or passes away.
Life insurance benefits cushion the financial strain in such situations, providing the family with additional funds to outsource certain responsibilities without collapsing financially.
Debt Coverage
Due to inflation, it is common for stay-at-home mums to take out loans to support their family financially to augment the breadwinner’s earnings. Also, SAHM may have student loans that they are servicing.
A portion of their life insurance benefits could be used to pay off some or all of what they owe should they unexpectedly pass away.
This way, the repayment of their loans doesn’t become the responsibility of their spouse and other family members.
Maneuvering Income Decline
Keeping the family afloat in the absence of a stay-at-home mum is tough. Their spouse or other family members often have to absorb their role, causing them to work and earn less.
The financial benefits from the SAHM’s life insurance would ensure that the quality of life for their immediate family doesn’t depreciate.
Children’s Education Expenses
The bulk of the work that stay-at-home mothers do revolves around the education of their children. They assist their children with assignments, extracurricular activities, and their overall academic progression.
With adequate planning, funds from the life insurance of SAHMs can be allocated to their children’s education to ensure continuity.
Conclusion
Life insurance is pertinent for effective planning of the lives of stay-at-home mums. It gives them optimum reassurance that their loved ones, especially their children, will not suffer immensely financially and emotionally in their absence.
The notion that life insurance is expensive and out of reach for stay-at-home mums is why many SAHMs do not advocate for it.
We urge all stay-at-home mothers to get life insurance early so that their benefits can accumulate over time and be substantial at the point of claims.
Please share your thoughts about stay-at-home parents having life insurance in the comment section.
