When To Take Out Life Insurance

By Author: Lecia Selbo
Total Articles: 49
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When most people think about life insurance, they tend to focus on the breadwinner, which, in most cases is the male head of the household. However, according to research from Legal and General, the importance of women is greatly underestimated.

As part of their Value A Mum research carried out in 2009, the average ''value'' of a mum was ?32,000 per year, 40% higher than dads, who came it at ?23,296. This value is the average between full-time, stay-at-home mums and those that go out to work.

Stay-at-home mothers commit 82 hours every week to their families. Working mums contribute 55 hours on top of a full working week.

What would happen to the family if something happened to mum and she was no longer able to fulfil her role as mother? Even though mums are more ''valuable'' than dads, only 53% have life insurance and just 26% have critical illness cover.

Many people are put off by the costs. Plus, most people don''t really like to think about what would happen if mum, or dad, weren''t around any longer. Additionally, the reason so few women have life insurance compared to men, is that their role ...
... in financial terms is greatly undervalued. Paying for childcare and the other domestic duties that mums take on is hugely expensive and life insurance is absolutely necessary to meet these costs if mum is no longer around.

Children cost on average ?132 per week, which tots up to ?123,552 by the time they are 18. How can just one parent afford this as well as a mortgage and all the other bills necessary to running a home?

Life insurance does not have to be expensive. Cover is available from around ?5 per month. You can also get critical illness cover, which provides financial assistance if you are strike down by an illness, from around the same amount.

Payouts in the event of illness or death will reduce the stress and tension placed on the remaining parent in such a difficult time. The financial assistance will help cover mortgage repayments, childcare costs and general home maintenance.

Life insurance is not compulsory and therefore it gets forgotten. But you can assure peace of mind for your loved ones when you have gone for just a small annual sum. Lecia Selbo is a freelance writer and insurance expert with 10 years industry experience. They recommend Legal