It may sound like a stay at home wife/mother is unemployed and doing nothing all day. The fact is nowhere near it. A mother is nanny, child-minder, cook, cleaner, maintenance person, teacher and therapist all in one. There is no one person who can replace the role of a mother in a family other than your mom.
And yet, according to a study published by LIMRA, a global research, consulting & professional improvement organization, a father is most likely to have life insurance than mother. Study finds that too many women remain uninsured. This would mean that families are taking a big risk with the welfare of their members should something happen to the mother.
If she cannot provide all those services anymore the whole family would suffer from it. Death of a mother in a family is probably more devastating than a father. Number of uninsured women is much higher in less developed countries. This may not be a surprise since number of life insurance policies sold per thousand people would be much lower as well.
Life insurance is a simple policy that can provide enough cash for the remaining spouse to survive after the death of the other. It can replace the lost salary or provide for childcare. The first objection would be about the costs and how a family that is struggling to pay the bills would find the extra money for life insurance. This is a legitimate concern.
However there are many different types of life insurance and ways of setting it up. For example, you can set up a decreasing life insurance when the costs are the main concern. This way, you would have a much bigger coverage when the children are young and family needs much more care. And it would gradually decrease as the children grow and can manage on their own.
Many people have various defenses against buying life insurance coverage. One of the most common one is that they think they are young and it is unlikely that one of them is going to die. But death is indiscriminate and age has got nothing to do with it. Nobody has a guarantee how long they are going to live. The risk with this line of thinking is that if the health of one of the spouse deteriorate it can become impossible to get life insurance. Then, you are really stuck and cannot do anything about it.
There is no doubt children need their mother and father and no money can replace it. However, leaving everything to faith isn’t a smart solution in a society where other solutions are available to people, like life insurance.