According to the BabyCenter’s 2011 report, the average cost of raising a child is $226,920! On average $10,000 is spent in the first year alone. These numbers can seem overwhelming and according to the same report 40% of moms said that having a baby costs a lot more than expected. Those co-pays can really add up if an infant has ear infections or you need to run to the ER in the middle of the night cause of a high fever. Also the cost of diapers, baby food, clothing, car seat, stroller etc.. can be a hefty toll on the monthly budget.
As seen with the numbers above the financial obligations of raising a child can be quite substantial. What happens if the primary income earner or a single mother passes away prematurely and they have no life insurance? According to LIMRA 43% of women have no life insurance at all and 40% of households with children under 18 say they would immediately have trouble meeting everyday expenses if a primary wage earner died today. If about 4 in 10 women have no life insurance at all there is a large financial exposure that needs to be covered to ensure the safe well being of their child’s future, whether that be everyday needs or their college education.
Life insurance for women is less expensive than life insurance for men, primarily because women live longer! Women generally go to the doctor more often for preventative care and routine check ups as well, which allows insurance underwriters to gather more accurate data when making their assessments. The price of a $250,000 20 year term life insurance for women policy can cost as little as $16 per month for a 40 yr old female. This term life insurance policy would cover the immediate expenses of raising the child especially if the parent who passed away was a stay at home parent who was raising the child.
Life insurance for women, especially stay at home mothers, is an area where more attention and education needs to be highlighted. In the event of a stay at home parent passing away immediate expenses will occur like child care costs, this is where the life insurance policy will truly benefit the family. So the true cost of life insurance is not the small monthly premium payment but is leaving your family in a state of financial uncertainty by not having life insurance at all.