I’ve been getting some flak for nudging my wife to get back into the job market after she stepped out in 2015. But let’s clear the air here – she hasn’t exactly been kicking back. She’s been a full-time mom since 2017 and has been a huge help with our blog, Financial Samurai, since 2009.
One of the main reasons I want her to get back to work is to make sure she can support the family if I’m not around. With the cost of living going up every year, it’s getting tougher to raise a family. Plus, the economy won’t always be as rosy as it is now. It’s always better to prepare when times are good, right?
As the one managing our finances, looking after our rental properties, and running our blog, I play a big part in keeping us financially stable. If something were to happen to me, our family could be in a tight spot. But if my wife starts working again once the kids are in school full time, it would give us an extra layer of security.
I’ll admit, I’m being a bit selfish here. I want to know that if something were to happen to me, my wife and kids would be okay. That’s why I’m encouraging my wife to update her resume, brush up on her job skills, and start earning again. Plus, I think it sets a good example for our kids.
I learned the value of hard work from my parents, who were always dedicated to their jobs when I was growing up in Japan, Taiwan, and Malaysia. If our kids can develop a strong work ethic like that, it would really boost their chances of being financially independent in the future.
But here’s the thing – I’ve been so focused on planning for a future where my wife goes back to work, I forgot about our life insurance policies. During the pandemic, my wife and I got matching 20-year term life insurance policies with $750,000 death benefits.
I had been looking for an affordable policy for years, but in 2017, I was diagnosed with sleep apnea, which meant I could only get a policy that cost a whopping $480 per month. But after another sleep apnea study showed a milder condition, I was able to get a policy for a much more manageable $138 per month.
After a podcast episode where my wife and I talked about the motivation to work, a listener emailed us. He pointed out that he and his wife both work full time, but he has enough life insurance to replace his income if something were to happen to him. They’re even considering whether his wife could stay home, given their unique medical situation.
This made me realize that our life insurance policies could provide a lot of relief. If I were to pass away prematurely, the $750,000 death benefit would cover about three years of living expenses. This would give my wife enough time to sort out our finances, sell off assets if needed, and even find a job if necessary.
So, with our life insurance policies in place, my wife doesn’t necessarily need to go back to work just for the sake of our financial security. If she does decide to re-enter the workforce, it would be because she finds fulfillment in her work.
In the meantime, we could make the death benefit last longer by cutting down on some expenses. We could also consider downsizing our home and switching our kids to a public school to save money.
Despite all this, I still think it’s a good idea for my wife to go back to work. Our financial situation has changed since we bought a new home, and if my wife were to start working again, we could potentially reach financial independence sooner. Plus, once both our kids are in school full time starting September 2024, she’ll have more free time to do something interesting that also pays.
But any return to work would be temporary. Working for three to five years after enjoying freedom from 2015 to 2024 seems like a fair trade-off.
So, what are you willing to sacrifice for financial freedom? Some people take mini-retirement breaks to keep their resumes fresh. If I could do it all over again, I would have taken a three-month sabbatical to extend my career until at least age 40. Leaving work at 34, in retrospect, was too early.
But if we manage to get back into the workforce, it would give us a chance to update our resumes. By dedicating three to five years to work and aggressive saving, we believe we can secure our financial well-being for the rest of our lives.
While life insurance gives us some security, the window of opportunity to reenter the workforce is closing. So, in our mid-40s, I’m eager for both of us to give work one last dedicated effort.
Have you ever thought about how life insurance decreases the need for one parent to have to go back to work? If so, is getting life insurance even more valuable since it lets at least one parent stay free?
If you’re looking to get an affordable life insurance policy, check out Policygenius. You’ll get customized quotes in one place. The relief I feel from having matching term life insurance policies alone is worth the monthly premiums.
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