Should a Stay-At-Home Mom Have Disability Insurance?

A stay-at-home mom brings no money in the door. Since disability insurance is designed to replace income, it would be easy to say that a stay-at-home mother should not have disability insurance.

Although a stay-at-home mom brings no money in the door, she keeps a lot of money from going out of the door. If we only look at the cost of childcare, she saves her family a lot of money.

Of course, if she is married to a man with a high income, disability insurance is more important to protect his income. However the economic loss of the person who does the important job of taking care of the children, should be covered with insurance if at all possible.

Is Long Term Disability Insurance Taxable?

As a general rule, if you pay for disability insurance with pre-tax dollars the income received from the company is taxable. If you pay with post-tax dollars the income received from the insurance company is not taxable. This is true for stay-at-home mom disability insurance, short term disability insurance in ohio, group disability insurance, individual disability insurance or mortgage income disability insurance.

Protecting your income against loss cannot be over emphasized. For many families, just six months of a parent being unable to work can set a retirement plan back by a decade. This is true whether the parent works in the home or out of it.

Chances are, the loss of mom’s services would have a major impact on the family financially. Her disability could mean that her husband would be forced to work less. It could mean that the family would have to find money to pay for child care. It could be a combination of both. In any event, stay-at-home moms have a positive impact on the family’s finances and that economic value should be insured if at all possible.

Tags: disability insurance