Would Your Family Survive Without You?by Anna Glendenning | More from this Blogger 06 Jul 2006 12:48 AM Our family went to a local amusement park for the 4th of July celebration. While standing in the various lines with our children I noticed a man who was clearly hurting, sad, and appeared very lonely. He hardly smiled watching his three young children enjoy the day. At one point while standing in one of the lines we had a conversation. The man told me that just before Christmas his wife suffered a brain aneurysm and suddenly died at the age of 31, leaving him to raise their children alone. He said, "I never stopped to think about the financial contributions my wife really made to the stability of our family, until I was left to cover all the bases myslef. The summer childcare costs have been devastating, not to mention the cooking, cleaning, shopping and errands my wife had always taken care of for our family." A homemaker, a housewife a stay at home mother, the title wasn't important. His family had carefully planned their finances and tried consider all the possibilities, they had purchased enough insurance to cover the loss of his income in the event something happened to him but given little thought about insurance for his wife. After all she wasn't contributing to the family earnings. It may sound terrible but, the fact is if you're thinking about life insurance for the family bread winner it's important to consider all of the costs your family might incur if the services of a stay at home parent needed to be paid for. Salary.com conducted a study during 2005, and concluded the average stay-at-home mother would earn $131,471.00 if she were paid for her services. The Salary.com site has a nice service where stay-at-home parents can calculate what they would be paid in real dollars. Then create a printable document which looks like a paycheck. If you wonder how much life insurance a stay at home parent should purchase this service makes the value of the stay-at-home parent very clear. There are some important reasons parents and families may want to consider life insurance and some tangible reasons to consider insuring the parent who takes care of the family. There isn't much the man at the amusement park can do now to cover the loss of his wife, but there are things we can do to spare our families from suffering the same overwhelming loss.
Glossary of Insurance Terms: A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase. Learn more about Anna Glendenning  Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork. Relevantinsurance tags health | Travel | insurance | home business | home | teenagers | quotes | money | prescription | Tips User Comments Evan (130) 06 Jul 2006 03:25 PMGreat article, really makes you think about the value of life insurance. Evan www.Leads4Insurance.com insurance-guide (5) 07 Jul 2006 03:41 AMGood article. I recommend you to read more about Understanding Life Insurance on http://insurance-guidance.com/life/understanding-life-insurance. BenH (5) 21 Mar 2008 07:37 PMAs an accountant and a financial advisor I unfortunately hear stories that are very similar to this one way to often. Over the course of my career there are three people that I have met that mimic the story above. I understand that life insurance is expensive. But it really is a necessity. I try to convince people that they need life insurance but due to my position as a financial advisor I think people are often just thinking that I'm only trying to make money off them by selling an additional insurance product. It’s very easy to persuade people to purchase Disability insurance (I think disability insurance is very important). Most employers offer a plan that covers 60% of the employees’ salary. It’s not hard for my client to figure out that I'm right when I tell them "you couldn't make it off 60% of your salary". But the biggest selling point is that disability insurance is affordable. Most of my clients are not rich they are just hardworking people that are trying to be financially responsible. Many of my clients reject life insurance for the following reasons: Term Life Insurance- There are no benefits if I don't use it. "My money is just gone after the term". Whole Life Insurance- Its way to expensive The two methods that I have used to overcome these barriers are finding very cheap term life insurance products. Of course there are some drawbacks like poor customer service and the unstableness of the insurers’ future economic outlook. My best course of action has been promoting hybrid term life insurance products (I may have made that term up). These products act like term life insurance but allow you to convert to whole life insurance products down the road. The conversion process allows you to recapture a portion of your monthly term life insurance premiums and put them towards your whole life insurance investment vehicle. I have had success with this format and I feel good when I can help somebody make a smart financial decision. I have designed a website www.life-and-car-insurance.com that explains these hybrid life insurance plans in more detail. The site does not have a bunch of Google ads or any monetization models but rather good life insurance advice. I’m using it as a learning tool for myself and a reference guide for my clients. Currently AIG is the only hybrid life insurer I have on the site. But I'm currently looking for more quality life insurance companies that promote these types of products. Community Tags housewife, life insurance, SAHM Discuss this article
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