What Every Mom Needs – part 3

11 May

  photo source

Where in our third installment – and hopefully helping you get a strong financial foundation in place.

What does every mom NEED?

Life Insurance (whether your a high powered career woman, stay at home mom, or single parent) you NEED life insurance. Now here’s something many people overlook: the reasons they need life insurance, especially women.Where should I look for life insurance?  Well, consider getting online quotes from multiple sources try Select Quote and Insure

Myth # 1 – I don’t need life insurance I’m a stay at home mom, so I don’t need income replacement. 

Ready for my answer? WRONG!

And here’s why a stay at home mom needs term life insurance to cover expenses that would usually be unaccounted for. Take this example, God forbid something happens to a stay at home mom and she dies who will take care of her children while her husband works? A daycare or babysitter if there not school aged. If the children are old enough to be in school you must figure there will still be before and/or after school care since your spouse may need someone to get the children on the bus or watch them till he gets home from work.

Myth # 2 – I only need a small policy.

Have you realistically calculated the costs both present and future (remember inflation rates need to be calculated) for what your policy will need or you want it to cover. Typically when someone does work many advisors suggest 20x their income – so a person making $50,000 per year would be advised to buy at least $1,000,000 policy. This only sounds like a lot initially trust me every dollar will need to be earmarked.

What are some items life insurance money should be used to cover:

  • Your children’s daycare or babysitting,
  • The mortgage on your family home (wouldn’t it be nice to know your mortgage would be paid off and your spouse will never loose the children’s family home)
  • College tuition (with student loans being such a huge burden it would be great to help give your children a head start in life by graduating college debt free)
  • Maybe private school tuition
  • or money set aside for children’s lessons (he likes soccer, she likes gymnastics, etc)
  • Also one item very much forgotten about is any debt you may have (credit cards, student loans, car loans, etc)
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: