Life Insurance Options

Solutions for Stay at Home Moms

Life insurance options.

Many people put off getting life insurance because it is unpleasant to think about the possibility of death, but it is something that really needs to be addressed in case of the unexpected.



There is really no reason not to. Now-a-days, low cost term life insurance is easy to get.

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Reasons for Life Insurance

Stay-at-home moms are considered a very low insurance risk as they are generally young healthy women who are unlikely to engage in high risk behavior.

Stay-at-home moms also typically need less insurance, about ¼ the amount that would be recommended for the principal wage-earner.

Even if you don’t have an income as a stay-at-home mom, you have to consider what expenses your surviving family members would encounter if you died.

Aside from the cost of a funeral and burial expenses, your husband may have to put the children in daycare or hire a nanny in order for him to work and support them.

He may also need to hire help for other aspects of your role in the family’s life, such as cleaning, food shopping, cooking, etc.

You may also wish to provide for your children’s future, such as college expenses or money to start a business. It is never pleasant to consider your own death, but surely you would want your family to be adequately cared for.

The reverse is also a consideration; what if something were to happen to your spouse? Your husband needs a life insurance policy so that in case anything was to happen to him, you and your children will be all right.



Generally 5-10 times his annual salary would be enough to pay off your house, provide for the children’s education and offer enough either to live on or pay for quality childcare should you choose to go to work. Large bills such as credit card debt, student loans and vehicle liens should also be considered.

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Qualifying for Life Insurance

You have three life insurance options you can buy for yourself and for your spouse.

Cheap life insurance is normally available through an employer if your husband is employed by a company, and neither of you will probably have to undergo a medical evaluations to qualify for life insurance.

Otherwise, you will probably have to undergo a physical to rule out any health concerns that might cut short a natural lifespan.

This process would normally include filling out a questionnaire and submitting to blood and urine samples and possibly a nicotine test.

If you are over 40, are obese, or are applying for an unusually high amount of insurance, a treadmill test and EKG might also be part of the medical screening.

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Types of Life Insurance

So what are your life insurance options?

There are three main types of life insurance options.

Term Life Insurance
Get a term life insurance quote if possible, and compare it to rates of other types of life insurance.

Often Term life insurance will be much cheaper than other types, and will still offer adequate coverage in case the unexpected happens.

You can buy policies in increments of 5 years up to 30 years and make monthly payments.

Term life insurance pays out a lump sum to the designated beneficiary in event of your death, and does not build cash value.


Whole Life Insurance
Whole life insurance covers the insured for life, and can be cashed in as a portion of the payments belong to the policyholder. You can make monthly payments, or arrange for the policy to be paid off in ten or twenty years and it will remain in force until your death.

The policy also earns interest in stocks, bonds or mutual funds as the principal grows. This adds value to the policy and offsets the portion of monies paid in that go towards the cost of the insurance.


Variable Life Insurance
Variable life insurance is similar to whole life insurance, but you as the investor decide how the principal should be invested. This allows you to participate in investments with a higher rate of return, and earn higher interest on your principle.

The cost of variable life insurance is higher, and is not recommended as one of the life insurance options for stay at home moms who typically are buying insurance for unexpected situations and not as an investment.

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How Cheap is Life Insurance?

Here is an example of inexpensive life insurance. Of course, each situation is different, and everyone’s life insurance options will vary.

Consider a stay-at-home mom who is in good health and does not smoke, drink or have any major health problems. A term life insurance policy in the amount of 200,000 with a policy length of 10 years could cost as little as $10 per month. As long as the premiums are paid on time each month, the insurance will be in force. In fact, $1200 would pay for the policy for the ten year period, and could be a sensible safeguard if you have the money to pay the total premium up front.

Stay at home moms should consider their children’s future and make plans to provide for them in the case of a fatal accident, terminal illness or other unforeseen tragedy. Life insurance can ensure that they will be financially taken care of in the event of your death.


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