Why Moms Absolutely, Positively Need Life Insurance

Whether a newborn baby, a teen, or a young adult, we depend on our mothers for so many things. From kissing it better and cheering from the bleachers, to picking up our toys to picking up the pieces of a broken heart, much of a mom’s ”job” is unpaid and, as a result, undervalued.

But imagine you could put a monetary amount on all that unpaid labour. Well, somebody did. In 2019, the value of a mother’s services was estimated at an average yearly salary of $178,201 for a 40-hour work week (source). And this is above and beyond a day job for working moms – and not counting all that overtime for stay-at-home moms.

When you look at it that way, moms definitely DO need a life insurance policy. And yet, men typically own more life insurance than women (source).

Why?

The most obvious answer is likely that moms aren’t typically the primary breadwinner. Even in a two-income family, the woman may be bringing home less income than her male partner, in large part thanks to the gender gap which still exists in Canada (source).

This reality often prevents mothers from getting the coverage they need – whether they are married, single, or a stay-at-home parent. Let’s break it down even further to see what sort of life insurance moms in different family set-ups may need.

Married Moms in a Two-Income Family

Many families rely on two incomes, yet only 31% of women have life insurance coverage compared to 34% of men (source).

Consider this: Most families wouldn’t be able to maintain their standard of living on a single income. Remember, life insurance can help cover childcare costs, household maintenance, and even mortgage payments – so that your plans for your family don’t change if something unexpected happens to you.

Single Moms

As the primary breadwinner and caregiver, single moms have a lot resting on their shoulders. And yet, many single-parent households don’t have any life insurance.

Consider this: Your child’s other parent or guardian may not have the funds to pay for a sudden and unexpected addition to the household. Remember, it is critical for single parents to have enough life insurance to cover all those day-to-day living expenses, childcare costs, and any future goals like post-secondary education or a wedding.

Stay-at-Home Moms

While stay-at-home moms may not earn a salary, they are still making a big financial contribution to their family every single day.

Consider this: Childcare, cleaning, cooking, and household management are all much-needed contributions to a functioning household. Remember, if you weren’t around to fulfill these responsibilities, there would be a huge replacement cost. It would likely be impossible for your spouse to take these on while working full time –and paying for these services does not come cheap.

So what’s next?

1. First things first, book a FREE Needs Analysis to go over your current situation and your future goals with an expert. They can advise you on the best life insurance solution for your unique situation. If you have young children, what you may need is a policy that will cover the costs of raising little ones before they move out of the house. On the other hand, if your kids are grown and you’re approaching retirement, you may want to look for a plan that will give you the opportunity to leave behind a legacy. Some plans allow you to dip into their cash value to give your adult children a leg up if they’re saving to pay for a wedding or down payment.
2. Designate your children as the beneficiaries. When your little ones are still small, you can name a trustee who would manage the funds on their behalf, and according to your instructions. Once your children have hit a pre-determined age (as noted in your will – see no. 3 below), they will inherit the remaining money as the beneficiaries. Don’t have a will? Then it will be up to the trustee to determine when they receive the money.
3. Make a clear plan and get it in writing. Of course, you will need to create a will that clearly outlines your wishes. The good news is that Serenia Life Financial members can take advantage of member benefits that will pay for all (or most) of the cost. Consider getting a free online will if your situation isn’t too complex, or get reimbursed up to $150 if you need a lawyer to draft a will for a more complicated situation.

While many might argue that your role in the household is invaluable, don’t sell yourself short. This Mother’s Day, do yourself a favour and give yourself the gift of life insurance.