Life Insurance Calculator for Stay At Home Moms (SAHMs)

How do you measure the value of, or place a dollar amount on, the contributions of a Stay-At-Home Mom (SAHM) to her family? SAHMs work for "free". For parents in the workforce, the process is pretty straightforward. Most insurance experts recommend, in general, you multiply your annual salary by 10. What if you don't earn a salary?

First off, let's acknowledge the necessity of life insurance for Stay at Home Moms. Even though you're not paid for the tireless work you do, your value is immense. You can never be replaced. However, if something were to happen to you, the financial impact to your family could be devastating. In fact, in their most recent report (2014), salary.com concluded that a Stay-At-Home Mom works, on average, 94 hours per week and has the earning potential of $118,905.

Fortunately, calculators exist to help you decide on a dollar amount for a life insurance policy. Life Happens, a nonprofit life insurance awareness company, provides a free calculator. It's easy to use and works even if you aren't a wage-earner in your family. You can find the calculator here. Remember these tips for filling it out:

1. Don't use commas when filling in dollar amounts. 

2. You will be able to fill in your spouse's (or partner's) income. 

3. There is also a space for total family income, in case there are additional sources of income. 

4. Some questions are specific, such as your tax bracket. It's okay to leave it at the assumed value if you are not sure. 

5. Remember, the calculator exists to provide you a general idea of how much insurance you should get. Ultimately, you should decide an amount you feel comfortable with. 

Finally, it's important to know that life insurance premiums (monthly or annual cost) are cheaper than you think. 

Many people believe coverage is more expensive than it is. On average, consumers estimate the cost of life insurance twice as high as the actual price. (source: LIMRA 2015) 

For about a dollar a day, a healthy 30 year old mom, can receive $500,000 in coverage. That's a fraction of the cost of a daily latte! 

To get started on an application, or to learn more about our process, click here