Women’s History Month

Income Protection for Stay at Home Mom

Women’s History Month is celebrated in March every year.  It’s a time to celebrate the contributions that women make across all sectors of society and to raise awareness of gender inequalities.

Income protection for families is often only attached to the breadwinner of the family.  While there is an obvious need to hedge against the loss of a household’s salary, the value of a homemaker or stay at home parent should be evaluated for income protection as well.  When considering the traditional duties of a stay-at-home mom (SAHM), we should consider the cost of replacing a full-time housekeeper, daycare provider, and house manager.

The average cost of daycare in the USA is approximately $11,000 per child each year.  The average cost of a full-time housekeeper is approximately $35,000 a year.  Scheduling/keeping appointments, tracking commitments, arranging social events and vacations, and performing other duties to keep a house running are all encompassed in house management, which is at the very least similar to the role of an executive assistant; the average cost is approximately $70,000 a year.

Once a monetary value has been assessed for the SAHM in the household, a life insurance policy for at least 10 years of income protection should be considered.  Optimally, the income protection policy should cover the time period for the full duration of the need, but that is determined by the preference and premium allowance of the family.

Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.