In choosing whether or not to stay home with my son I really need to review the money that we will lose on a bi-weekly basis as well as all of the benefits that come with full time employment. Since my husband is self employed I took advantage of all of my employer’s benefits. They carried my life and disability insurance as well as dental and health insurance for my husband, son and I.
We can remain on COBRA for up to 18 months after my termination date, but the cost of medical and dental coverage is over $1450 a month! My employer will subsidize the employer portion for the first six months of my unemployment but after that we’ll need to pay the full amount. If I don’t return to work and remain on COBRA I’ll not only fail to draw a salary, but I’ll need to find an additional $17,400 a year to cover the cost of insurance! I know there are cheaper options out there, but for a family of three I’m not sure if we’ll get away with paying much less than $1000 a month, which is at least $12,000 a year.
I’ll also need to purchase my own life insurance policy. Surprisingly the insurance companies don’t seem to be too concerned with my past medical issues. They said high cholesterol and blood pressure are bigger red flags, but I won’t believe that until I have a policy in hand. I’ve been quoted rates as low as $500 a year for $500,000 worth of coverage. That’s not a whole lot of money to shell out, but it is additional money that we need to take into account.
The more I review the facts the more I realize that staying home to raise my son is not just about the paycheck that arrived every two weeks, but also all of the additional expenses that my former employment used to cover.