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Ask Dave

Life Insurance for Stay-at-Home Mom?

A stay-at-home mom is looking at life insurance plans.

QUESTION: Alisha is a stay-at-home-mom and asks Dave what he recommends in terms of life insurance. She has a whole life insurance policy right now but doesn’t like it.

ANSWER: Whole life insurance is a rip-off.  Cancel that policy immediately.

When it comes to life insurance, term life is the best way to go.  To figure up how much you need for a stay-at-home mom, roughly add up how much the work you do (cooking, cleaning, laundry, child-care) costs per year.  Take that total and multiply it by 8 or 10.  That's how much life insurance you need. If something were to happen to you, your husband could use that money to replace the all jobs you do.