If a stay-at-home mother earned a paycheck for all her services, her annual income would be $116,805 (national median), according to Salary.com.
Whether working in or out of the home, a life insurance policy for the wife should be a major consideration in any family’s financial plans. However, according to recent studies by Massachusetts Mutual Life Insurance Co., the man of the house has more life insurance than the female, which could be a huge mistake.
According to an article recently published in the Nashville Business Journal, only 36 percent of women are protected with group life insurance at work and 40 percent have their own individual policies (source – LIMRA, a think tank for financial and insurance service companies).
The article goes on to state that women who do have life insurance on average have much less coverage than men, the organization found.
However, if the matriarch of the family dies, her family could be thrown into financial chaos.
“I think under-insuring the female, whether she is a working or stay-at-home mom makes no more sense than under-insuring the male,” said Beth Wood, assistant vice president of business and women’s markets at Massachusetts Mutual Life Insurance Co. “There are just too many uninsured couples putting their families at risk.”
For example, if a working woman dies or becomes disabled and cannot work or take care of the family, her husband may have to cut back his hours to stay at home or hire someone to care for the children, which could make financial matters worse.