The value of life insurance for the non-working spouse
It can be very easy to overlook the value, especially the financial contributions, of a stay-at-home spouse—that is, until the person is gone.
When purchasing life insurance, single-income families often overlook the importance of insurance for the spouse who doesn’t work, if only because he/she does not receive a regular paycheck like the other spouse or partner does.
In its 2008 Mom Salary Survey, salary.com reported that the economic value of the 10 most common functions performed by mothers add up to $116,805 per year, whereas the average salary for a working mother is only $68,405.
The survey also found that the stay-at-home spouse is always on the clock as the primary housekeeper, teacher, cook, psychologist, and chauffer, spending an average 94 hours a week on the job.
Few people realize that the average cost of all the services performed by the stay-at-home spouse would total an amount that would hardly be affordable by a surviving spouse, at the same level of quality, and could not be replicated by just one person. This includes childcare, house cleaning, grocery shopping, cooking, transportation services, laundry, looking for summer camps, and many other time-consuming activities that can often require specialized knowledge and skills.
This is why protecting both of the parents of any household with life insurance, whether they work in or outside of the home, is equally important.
To discuss this and other family financial concerns, you can contact a local New York Life agent. Click on the 'Talk to Us' button to find an agent near you.