Financially Replacing Mom Would Cost A Small Fortune

The Insurance Information Institute recently cited a nationwide poll conducted by wholesaleinsurance.net (an industry news and information resource) that as many as 43% of all adult women have no life insurance. Of those that are covered by life insurance, many are severely underinsured, carrying only 25% of the amount that would likely be needed by their policies' beneficiaries. A century ago, women weren't able to buy life insurance. Today women can and do protect their finances but they either aren't buying the coverage, or, they aren't buying nearly enough. Today, many women are more educated and often better paid than their spouses, yet their life insurance coverage hasn't kept up according to the recent nationwide poll numbers.  In addition, the poll showed that women who serve as the family's primary breadwinner carry 31% less life insurance than their male counterparts. What would happen to the family if the mom wasn't around? Who would manage the day to day housekeeping, laundry, driving the kids to and from their sporting events etc? Life insurance policies have a variety of uses. They serve to replace income for children and other adults who are financially dependent on a breadwinner. The policies can also pay for the cost of funerals, burial, probate and estate administration. They can pay off the mortgage. They can pay to complete the children's education. In short, estimating the required funds necessary to maintain the lifestyle of a family after the death of the wage earner, cannot be taken lightly, overlooked or ignored. Until next time.