Life insurance is an essential financial foundation of a family. It provides financial protection to the family members left behind if the insured passes away, especially if the one is the breadwinner of the family. But thinking that life insurance is not important to the other one who stays at home (your housewife) is a deadly mistake.
Here are the reasons why your housewife also needs life insurance:
1. The Cost of Dying is the same
According to my research, The Cost of Dying in the Philippines, the average expenses when a person dies in the Philippines, is about 500,000+ depending on the type of service you would want.
Be it the husband or the wife, the cost is the same.
It is not only that, final expenses do not only include funeral expenses. This also includes: final hospital bill (in case the person fought his/her life in the hospital) and existing debts of the person (in case he/she has debts) or even a family debt. Family debt usually happens when family members start on asking for help as one struggles to fight for his/her life.
2. Dying of one creates a liability to the other
If the breadwinner dies, the whole world of the family dies too if there is no life insurance. Support of the family will collapse. Once financial support is gone, all the responsibilities of the breadwinner will be transferred to the non-working spouse. You know what will happen here.
If the non-working spouse dies, there is also a liability that will be left to the working spouse. The efforts of the stay-at-home mom involves unrecognized work that will only be felt if the person is gone.
MyFinanceMD polled housewives about the top six most time-consuming jobs they do, asking how much time they spend doing them each week and ‘applying standard salary data’ to calculate the salaries.
For non-working moms, taking care of the kids is what keeps them busiest, taking up around 56hours hours every week, second is housekeeping with 35hours per week.
So, if you undervalue and underestimate the worth of the stay-at-home spouse or the ones taking care of your household, better think again. She may even worth more than you actually earn. Losing her will also have a financial set back since you have to get some form of help to continue working for your family.
3. Absolute Community of Property
If you are a Filipino citizen, married in the year 1988 up to present, your marriage is under the Executive order 209, or the Family Code of the Philippines, which states that in the absence of a prenuptial agreement, the properties of the couple will be governed by the “Absolute Community of Property.” Let me explain this by giving you an example:
Tina and Chad were married in the year 1990. Tina only has 10 pesos but Chad has a 100Million pesos worth of properties, money and business.
Absolute community of property – means that, when Tina and Chad became husband and wife, they enter into this ABSOLUTE COMMUNITY OF PROPERTY. Meaning, once married, Tina now owns half of what Chad owns and Chad owns half of Tina’s. Tina now is 5 pesos poorer, but 50M richer, Chad is 5 pesos richer but 50M poorer. They each have now, 50M pesos and 5 pesos each.
When one of them dies, the Estate Tax Liability will be shouldered by the other. So, if Tina dies, even if she is not working, for a 50Million and 5 pesos worth of estate, means Chad had to pay 3.9M of Estate Tax Liability to the government.
Learn more about what Estate Tax is, and how it can hurt you after death. Read Here.
You see, marriage is the union of two persons together as one. When one dies ahead of the other, this may entail not only an emotional heart break but also a financial setback. Each may have different responsibilities and roles in the family, but each of them has a great impact on finances when the other goes ahead of the other.
Getting life insurance for both of husband and wife can somehow lift the financial setback the family may experience so they can deal with the emotional heart break with dignity.
Rx
- Life insurance is important to both couples. But more coverage should be given the breadwinner.
- Cost of Dying is the same with husband or wife. Life insurance can help with the final expenses of the family.
- Absolute Community of Property governs families today. Estate tax liability will be shouldered by the one left behind.
Final Message:
For Husbands:
“Never underestimate the worth of the work your housewives do to your family. It may even worth more than what you earn.”
For Wives:
Please do not stop your husbands if ever he is getting a Life Insurance for himself and/or for you. Consider yourself even lucky, that you have a husband who cares for you and your family by thinking of taking care of you beyond life.
Do you want my guide to help you get the perfect plan for your spouse? Contact me here.
Reminding you that you are ONE,
Read More:
- The Cost of Dying in the Philippines
- Buti pa ang Kotse Insured, Eh ikaw?
- How much LIFE INSURANCE do you EXACTLY need? Here is how to Compute
- What is ESTATE TAX and How it can hurt you even AFTER DEATH?
Sources:
Family code of the Philippines
Housewives survey
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Love it doc. Very important and very simple to understand. I didn’t know how important I am as a house wife. Thank you for letting us know. Will contact you soon.
Glad to be of help. 🙂
Thanks for sharing for this. I agree with what you said. If possible, all members of the family should get an insurance.
Yes. Thanks for your insight.
Thank you for this eye-opening article. Most of the articles I read encourage breadwinners “only” to get a life insurance. Now it makes sense. This not just an article on finances or insurances but also something that emphasizes the noble duties of a homemaker. 😊
Thank you Wenna