Although some stay at home moms get life insurance through their husband's job, many times this is not enough. The type of job a stay-at-home mom does is extremely important. If something happens to this person, the other individual who is working may have to stop working in order to make sure the children are taken care of. Cleaning, taking the kids to school, going to after school activities, driving to doctor appointments, helping with homework or school projects, acting as a nurse, and cooking are just some of the various tasks stay-at-home moms do on a daily basis. All these tasks undoubtedly have a significant financial value, and getting the right amount of insurance coverage is important.

If you try to add a value to the type of work moms do at home, plus the loss of salary their partners would have to supplement for in case something happens to mom, a US$20,000 or $30,000 policy commonly offered by many companies would not be enough. Americans in general do not have enough life insurance coverage. LIMRA's 2010 life insurance ownership study revealed that 30% of American households have no life insurance coverage, and more than half (58 million) are underinsured. This would leave their families vulnerable in case of death. Working women of all ages average smaller amounts of individual life coverage than men of similar ages, according to LIMRA's report. On average, women have $129,800 worth of individual life insurance compared to men with $187,100 of individual life insurance coverage.

SEE: 6 Types Of Insurance Coverage You Didn't Think You Needed

Economic Value
Stay-at-home moms have even less life insurance coverage. However, considering the type of work they do at home, and the economic loss that would occur if they pass away, it's important for these moms to get extra coverage even if they are on their husbands' plans. According to a recent Salary.com survey of more than 8,000 moms, a mother's economic value equals an average salary of $112,962 if she were to get paid for various duties at home. Part of this salary is for chores such as housekeeping and laundry. A laundry machine operator has an annual salary of $20,500. Stay-at-home moms commit to just over six hours a week doing laundry, while working moms spend approximately four hours a week at this task. Another chore moms are proficient at is serving as psychologists. These professionals get an annual average salary of $76,650. Stay-at-home moms serve nearly eight hours a week doing this, while working moms serve almost six hours a week at this task. This is why its crucial for a stay-at-home mom to get life insurance because the various tasks she performs around the home will have a real economic impact if she is absent.

SEE: Keep Working Or Stay At Home With The Kids

Child Care Costs
Child care costs alone are high, but depending on where you live the cost to care for a child will vary. New York and the District of Columbia have some of the highest child care costs. According to information provided by the State Child Care Resource and Referral (CCR&R) Network, the average annual cost of full-time care for an infant in a center in 2010 ranged from $4,650 in Mississippi to $18,200 in the District of Columbia. The average annual cost for part-time care for a school-aged child in 2010 ranged from $2,450 in Louisiana to $10,400 in New York. In the unforeseen circumstance a mom passes away, a life insurance policy can help pay for child care costs and college education. A policy can also help cover funeral expenses and serve as an inheritance for the child.

The Bottom Line
It is undeniably important that stay-at-home moms get adequate life insurance coverage. This act should not be neglected as it ensures that in the event of an untimely death, some of the financial burden would be lifted off their partners' shoulders.

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