In 1895, when Royal Neighbors was founded, by and large, women were not considered insurable. The care of the family and management of the household was typically the wife’s responsibility while her husband worked. But very little financial value was placed on her contributions to the home. Our founders knew this to be a false premise and were determined to change the status quo.
While much has changed in women’s lives through the years, the need for financial security through life insurance has not. In fact, it is more important than ever.
Income Replacement for Working Women
Research shows that women are now the sole or primary breadwinner in more than 40 percent of American households. And they contribute to the income in another 20 plus percent. It is critical for these women to protect their families in the form of life insurance in the event the worst-case scenario occurs.1
Stay-at-home moms need coverage too
Income replacement is one of the primary reasons many people purchase life insurance. In the event of a loss, this financial protection could also help provide for services needed like childcare, household management (cooking, cleaning, home maintenance, etc.), and final expenses in households with a stay-at-home mom. Salary.com estimates the median salary for all the different jobs at-home moms perform around $175,000 a year!2
Leaving a Legacy
Life insurance is also a way to leave a legacy for your children – one that could cover college tuition, pay for a wedding, or provide a down-payment on their first home.
Which Type Do I Need?
There are two primary types of life insurance: Term and Whole Life.
Term Life Insurance
For those starting out in a new career, with a first home, or with a new baby, Term Life Insurance is a good first step in protecting your financial future. It is affordable, flexible, and provides peace of mind to protect you and your family’s dreams.
Term Life Insurance provides death benefit coverage for a specific period of time with a fixed premium amount. It is an economical option that can help maintain your family’s standard of living by paying bills such as mortgage, auto loans, or school tuition if you pass away during the term of the insurance. It also allows you to convert your Term Life Insurance to permanent life insurance in the future, at a time right for you.
Whole Life Insurance
Whole Life Insurance is permanent, no matter what life may throw your way. It provides lifelong coverage and the ability to accumulate cash value while paying level, predictable premiums.
It is a cost-effective option that provides longer peace of mind that your family is protected, as well as cash value that you can access in an emergency.
You can also buy coverage to make sure your final expenses are covered.
1 americanprogress.org/issues/women/reports/2019/05/10/469739/breadwinning-mothers-continue-u-s-norm
2 forbes.com/advisor/life-insurance/stay-at-home-parents
Form TRN00026; Rev. 5-2021
This article is for informational purposes only, you should not construe any information provided as legal, tax, investment, or financial advice. No reader should make any investment decision without first consulting her or his own financial advisor and conducting her or his own research and due diligence.
