Back in the olden days (Do your kids ever say that to you and make you feel older than dinosaurs? You were alive before Netflix?) people banded together in groups to form “burial clubs.” These clubs used the money members paid in to cover funeral expenses for the deceased. According to Wikipedia,
“The sale of life insurance in the United States began in the late 1760s. The Presbyterian Synods in Philadelphia and New York City created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759.”
Several other companies formed over the next century. All with a common goal of helping to support the widows and children the deceased left behind.
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Life Insurance…Who Needs It?
So, what does this have to do with you?
Well, even today it’s more prevalent to have life insurance on the male. Let’s take care of his spouse and children. Women may have less insurance than their male counterpart, or none at all. It’s a common misconception that you need to have an income to need life insurance. If you’re not contributing money to the household no one’s going to need money if something happens to you, right?
WRONG!
Stay-at-home parents I’m talking to you.
Everyone knows you need insurance on the breadwinner. There are several calculators on the web that tell you how much you should purchase. Five times your annual salary, enough to pay off any loans and put kids through college, pull a number out of a hat, etc.
READ MORE: Term Life Insurance vs Whole Life
What is often overlooked though is the parent that keeps the household running smoothly, cares for the kids, cooks, you get the idea. You may not contribute to the household income, but if something were to happen to you would the working parent have the means to pay people to do what you have been doing for free? Would they be able to take a few months or a year off work to grieve?
It’s not uncommon in single income households for the employed parent to work 50+ hours a week. They often have demanding jobs with odd hours and may even travel frequently. Finding childcare for extended hours is challenging. They may need to hire a babysitter for evening/overnight hours, or a live-in nanny. Finding time to pay bills, grocery shop and cook and clean can be a real struggle while working this many hours.
This is where life insurance for you comes in. Don’t think just because you don’t have an income your life isn’t worth insuring. Think about the expenses that your surviving spouse would need to incur to keep the house running. Then think about how long they’d need these additional expenses. That’s how much insurance you need! Fact – According to a recent LIMRA Life Insurance Barometer Study, 83% of consumers say they don’t purchase life insurance because it’s too expensive – the same audience that incorrectly believes life insurance costs nearly 3 times what it actually costs.
Contact us today to learn how affordable life insurance can be.
