A Reason Why Your Spouse Doesn’t Need To Work

I’ve faced significant criticism for encouraging my wife to re-enter the workforce after being retired since 2015. However, it’s important to clarify that she hasn’t been truly retired. Instead, she has been actively engaged as a full-time mom since 2017. In addition, she has helped do a lot of the operations and editing for Financial Samurai since 2009.

One reason why I’d like her to return to work is to ensure she can provide for the family in case I pass away before our kids reach adulthood. With ever-increasing inflation, raising a family is getting more difficult by the year.

Managing our family’s finances, overseeing rental properties, and running Financial Samurai, I play a vital role in our financial stability. If something were to happen to me, our family would be at financial risk. However, if my wife returns to work once our kids are in school, it would significantly enhance our family’s security.

In a way, I admit to being selfish because I want the reassurance that, in the unfortunate event of my premature passing, my wife and kids would be financially secure. There’s a reason for the saying, “May you rest in peace.”

Encouraging my wife to update her resume, refresh her job skills, earn income, and have a purpose in case I’m not around is a source of comfort for me. Additionally, I believe that her working part-time sets a valuable example for our children.

My own strong work ethic stems from witnessing my parents’ dedication growing up in Japan, Taiwan, and Malaysia. If our kids can cultivate a similar work ethic, it would significantly improve their chances of achieving financial independence in the future.

Life Insurance Reduces The Need For A Spouse To Work

I’ve been so focused on planning for a future that involves returning to work, that I forgot about our life insurance policies obtained through Policygenius. Amid the pandemic, my wife and I secured matching 20-year term life insurance policies with $750,000 death benefits.

My search for an affordable policy spanned several years, but in 2017, I faced a setback when diagnosed with sleep apnea, limiting me to a policy costing an unaffordable $480 per month.

Determined to find a solution, I underwent another sleep apnea study, and the results showed a milder condition. With this improvement, I reapplied for life insurance and successfully secured a policy at a much more manageable $138 per month. The relief was palpable.

Following a podcast episode where my wife and I discussed intrinsic versus extrinsic motivation (available on Apple or Spotify), a reader reached out with the following email.

Email from podcast listener that made me see the light:

Sam,

Really enjoy the content you provide weekly, thank you!

On a recent podcast, you discussed the benefit of your wife returning to work in order for her to be able to provide for herself and your children should something happen to you. 

My wife and I currently both work full time jobs. I know that I have enough life insurance that she can replace my income through the rest of her working years so she and our children are not impacted financially should something happen to me. 

We are looking over the budget right now to see if we can make it work for her to stay home – our medical expenses and situation differ drastically from most families. 

Given your wife’s comments about not wanting to return to work, I’m wondering why you feel this is what is best if the same goal can be accomplished by affordable term insurance?  I realize you may not be insurable, if so, this is likely coming across as rather cold – if that’s the case I apologize. 

I’m sure this sounds critical, and I don’t know your family situation, from the outside, appears she will be happier at home and you don’t have to deal with a competing working schedule, asking for time off, office policies/frustration, etc. 

Jeremy 

Life Insurance Helps Keep Retirees Retired

Thanks to Jeremy, I now recognize the immense relief our life insurance policies provide. In the event of my premature death, the $750,000 tax-free death benefit would cover approximately three years of living expenses if she didn’t change a thing.

This period should afford my wife ample time to navigate our financial matters. She’ll have enough time to sell off assets rather than be a motivated seller. She could also hire assistance for sustaining Financial Samurai since there are now so many articles to update. Finally, she could bide her time in securing part-time or full-time employment if necessary.

While ideally, I would prefer a $1 million death benefit, $750,000 was the maximum achievable without undergoing a medical exam. Perhaps I’ll just shop around for another $250,000 term life insurance policy to top things off.

With our life insurance policies in place, my wife doesn’t necessarily need to return to work solely for the family’s financial security. Instead, any decision to re-enter the workforce would be driven by her finding fulfillment in the chosen endeavor.

In the meantime, to make the death benefit last longer, my wife could dramatically cut down on sneaky expenses. Then there are two obvious cost-cutting actions to take if necessary: sending the kids to public school and downsizing homes.

Going Back To Work In Some Capacity Is Still Worthwhile

Despite the realization my wife doesn’t have to return to work thanks to my life insurance policy, I still think it’s a good idea. Our financial independence status has shifted after acquiring a new home. If my wife were to return to work, we could potentially regain financial independence sooner by one or two years.

There will be a void to fill once both kids are in school full-time starting September 2024. Why not spend the extra free time finding something enjoyable in society that also pays?

While I acknowledge that life would be more comfortable if she didn’t have to work, any return to work would be temporary. Working for three-to-five years after enjoying absolute freedom from 2015 to 2024 seems like a favorable trade-off.

Short-Term Sacrifice To Be Free For The Rest Of Our Lives

Some individuals opt for mini-retirement breaks on their path to financial freedom. This is a wise strategy as it prevents their resumes from becoming too stagnant. If I had a retirement do-over, I would have taken a three-month sabbatical to extend my career. Leaving work at 34, in retrospect, was too early.

Fortunately or unfortunately, my wife and I have taken extended breaks. Our 12-year and a nine-year hiatuses place us at risk of potential challenges in reentering the workforce.

However, if we manage to secure jobs again, it presents an opportunity to refresh our respective resumes. By dedicating a focused three-to-five years to work and aggressive saving, we believe we can secure our financial well-being for the remainder of our lives.

With major expenses like college, a new car, and our forever home already budgeted for, there are no significant financial hurdles ahead. Instead, the biggest hurdle we must overcome are the inevitable unexpected expenses that will come our way.

While life insurance provides us with security, I am aware that the window of opportunity to reenter the workforce is narrowing. Consequently, in our mid-40s, I am eager for both of us to give work one last dedicated effort.

Reader Questions And Suggestions

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 remain 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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