SAHM

SAHMs Don't Need Life Insurance

Did the title grab your attention?

Here's the deal: No one needs to have life insurance. Life insurance isn't for you; it's for those that depend on you. SAHMs (stay-at-home moms) should want it. 

If you have loved ones who rely on you, and heaven-forbid, should something happen to you, the consequences would be devastating, of course. To even think about that is terrifying. Yet, don't let that stop you from making a plan. 

While life insurance can't touch the emotional impact of loss of life, what it can do is provide financial peace of mind. Even if you don't earn money, and you stay at home with your children, salary.com estimates that a SAHM's annual financial worth is over $100,000! SAHMs are difficult to afford and you should seriously consider insuring that worth. 

Here are 3 things you need know about life insurance:

1. Life insurance is surprisingly inexpensive. For a fraction of the cost of a daily latte, most can purchase appropriate term life coverage. 

86% say they haven’t bought life insurance because it’s too expensive, yet overestimate its true cost by more than 2x.
— LIMRA and Life Foundation

2. Life insurance doesn't have to be complicated. The insurance industry is notoriously confusing and has earned itself a bad reputation. Don't let that stop you. The simplest way to protect your family is to select a term policy for the duration of time family members are dependent on you. Here's an example:

SAHM Mom, 35 years old, children ages 10 and 12. Annual worth of $100,000.

Term policy for 10 years (until youngest child is out of the house) for $1,000,000 (10x your annual worth). 

Monthly cost of $18.60. 

3. Life insurance can help your family function. Consider the following things that life insurance proceeds can take care of:

  • Childcare
  • Outstanding debt (credit card, student loans)
  • Mortgage
  • College education for children
  • Household needs (cooking, cleaning, yard work)
  • Funeral costs

Life insurance is cheaper than you think, doesn't have to be complicated, and can provide for family essentials. You don't need it. You just might want it. 

Insurance Happens specializes in helping moms and dads find appropriate term coverage. The best way to get started with is with a no-obligation, free quote.

 

 

Moms - Life Insurance Is Confusing. Take Action Anyways.

You know you need it. It's just that you don't know much about it and it all seems so confusing. Also, it reminds us of death, which is never fun to think about. We're speaking of life insurance, of course. In fact, there are millions of us who feel "stuck" about it. 

There are 19 million ‘stuck shoppers’ who believe everyone should have life insurance even though they do not own it themselves.
— Get Real Already - Authenticating Industry Language, LIMRA 2015

The insurance industry (not to mention the entire financial world) is complicated and baffling. Most would say they've done a poor job communicating their services. Repeated studies indicate that if a consumer is unsure about a product, they will hold off on making a decision. In essence, human behavior tendencies cause us to "freeze" instead of taking action if a concept is confusing, or worse, appears to be misleading. 

That's fair. However, it shouldn't prevent us from moving towards protecting our families. Let's focus on one type of insurance product: term. Term life insurance is the most affordable way to purchase protection for a specified amount of time (i.e. the duration of when your children are living at home or going to college). Moms, you love your family more than anything. It's the right and responsible thing to do. 

At Insurance Happens, our goal is to educate and create the simplest process possible to assist you in becoming insured. Here are two places to start:

1. Check out Insurance 101. Here, you can learn about the basics of term insurance and why it's important. Our free calculator is on the same page and helps to assess your family's needs. 

2. Get a Free Instant Quote. Term insurance is cheaper than you think. Lattes cost more on a daily basis.

In any situation, the best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst thing you can do is nothing.
— Theodore Roosevelt

Educate yourself and take action. Your future self will thank you.  


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

Moms and Dads - Compelling Events Remind Us To Get Life Insurance

Maybe it's something exciting, like flying somewhere for a family vacation. Possibly it's something difficult, like the loss of a loved one. We think about life insurance when compelling events happen in our lives. For many, the thought is fleeting because we don't like to think about something scary, like death. 

Let's say a coworker passes away unexpectedly. You are reminded of how precious life is and how we're never guaranteed another day. It's unnerving. Thoughts of mortality typically make us uncomfortable and paralyze us from taking action - to plan for the unknown and protect our loved ones.  

What if you could rise above those fears and take action? Challenge yourself to tackle those yucky, uncomfortable feelings about loss of life. 

Life is precious and invaluable. No dollar amount can be placed on a human life. Yet, loved ones rely on your financial means. Understanding the financial value of your life will allow you to determine how much life insurance you need. Fortunately, there are resources that make the process simple and informative. 

Life Happens, a nonprofit life insurance awareness organization, created a "human life value calculator". The calculator analyzes items such as your age, occupation, income and the number of people that depend on you financially, to determine the proper amount of insurance coverage. 

Ultimately, it's important to work with an agent who will make the steps to obtaining life insurance easy and straight-forward. To get started with a free no obligation quote, click here

"Tell me, what is it you plan to do with your one wild and precious life?" - Mary Oliver

What to Expect When You're Expecting... A Life Insurance Exam

Congratulations! You've taken the next step to becoming insured and scheduled your life insurance medical exam. Policies written with a medical exam are the most affordable, so it's usually worthwhile to go through this brief inconvenience. 

The technical term for the process is called a paramedical exam. A certified medical professional (paramed) will be sent to you, typically in the comfort of your home, to complete a basic medical test. It's simple, quick and harmless.

Here's what to expect:

1. Questionnaire

The paramed will either ask about (or confirm answers to) your health history. Questions will include tobacco use, lifestyle choices, and family or personal illness.

2. Measurements

Your height, weight, and blood pressure will be recorded. 

3. Samples

Blood and urine will be collected. 

That's it. It's as easy as 1, 2, 3...

Of special note, if you are over the age of 50, most insurance carriers will request additional measurements. Specifically, you may need to have an EKG test on your heart. And if you are male, a PSA (prostate specific antigen) test. 

It's understandable to feel apprehensive about completing the exam. Yet, the relief you will feel once it's over is worth it. You are taking a step towards protecting your loved ones. Not much feels better than that!

For advice on what to do leading up to your exam, check out this article from Life Happens, a non-profit insurance awareness organization. 

Check out our free quote page to get started. It's easier than you think. 

 

 

 

4 Super Responsible Things SAHMs Should Do

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SAHMs (Stay At Home Moms) - Anyone else feel like life is moving so quickly that it's hard to catch your breath? School, sports, playdates, errands, appointments, chores, and the like seem to fill each moment of our calendar. Sigh. 

The busyness of these days are of consequence. Lives are made from them. We should do our best to treasure our overfilled calendar because it means we have loved ones that rely on us. 

Still, while we are running from one thing to another, we have the nagging sensation that our "important" to-do list remains unfinished. You know what I'm talking about - the boring or confusing items that should be taken care of, but you don't even know where to start. 

In all your spare time (wink, wink), put these on your calendar. You will be grateful and a weight will be lifted from your shoulders. My suggestion is to tackle one per month. 

1. Will - name guardians so your children always stay in good hands. (excellent resource: Willing)

2. Money - create and use a budget. (we recommend: Mint or YNAB)

3. Organize - keep a basic system to keep it all straight. (try: Evernote or if you are not tech-savvy: Franklin Planner)

4. Insurance - protect your family no matter what life brings. (start here: Insurance Happens - that's us. Also visit Life Happens, a non-profit organization)

You got this. One thing at a time. 

P.S. - Shout out to GYST (Get Your S#%$ Together) for their excellent ideas and resources. Their organization helps others avoid the hardships they personally faced through planning and organization. 

 

 

SAHM - How Much Life Insurance Does a Stay At Home Mom Need?

Mother [muhth-er] - noun

  1. One person who does the work of twenty. For free.

      (see also: 'saint')

Can you place a dollar amount on motherhood? Absolutely not. You are priceless. 

Should you take steps to protect yourself financially with life insurance, even if you are a stay-at-home mom? Absolutely. 

Still, each year salary.com calculates a stay-at-home mom's "worth". In their most recent release (2014), it was estimated that an average mom works 96.5 hours weekly and has the earning potential of $118,905 annually.

Wow.

Insurance Happens recommends, in general, a person have at least 10 times the amount of their annual salary in life insurance. SAHM moms - in your case, according to salary.com, a term policy of approximately $1,000,000 to $1,250,000 makes sense.

Most importantly, you should decide on an amount you feel comfortable with. Courtesy of Life Happens, a nonprofit life insurance resource, we provide a useful calculator to assist you in determining an appropriate amount of insurance.

While the dollar amount tied to what you do everyday, 24/7, is impressive, I want to acknowledge that what you do is so much more than that. You represent love to your family. Love is priceless. 

You can never be replaced. Yet, protecting yourself financially is the right thing to do.