Money Monday: Life Insurance for homemakers

Many of us know the importance of having life insurance for the "bread winner" of the family and some of us also have life insurance for our children, but most of us undermine the importance of having life insurance on a homemaker. We need to ask ourselves, what would our family do should something happen to us?

Homemakers provide childcare, transportation, cleaning and laundry services, meal preparation, shopping, etc. If something were to happen to a homemaker, some of our "jobs" will likely be taken up by other members of the household, but it is likely not possible for all of our work to be absorbed by other family members. To determine how much life insurance a homemaker should have, figure out what responsibilities will need to hired out and how much they will cost. Add 3-4% for inflation and multiply that number by the number of years you will need that service. Add up the amounts for each service and you will have the amount you NEED to have for life insurance. Add in any extra amount that might be desired, such as time your spouse may take off to mourn and that is the size policy you should seek.