Caregiving’s $145K Paycheck: Why Life Insurers Are Poised to Profit

The $145,235 "Mom Salary"—a metric quantifying the economic value of a mother’s unpaid work—has quietly become a bellwether for one of the most overlooked investment themes of the decade. As society begins to acknowledge the staggering financial contribution of caregiving roles, insurers are racing to fill a gaping void in the market: policies that value non-traditional income streams and close the gender-driven insurance gap. This isn’t just about empathy; it’s a $1.2 trillion opportunity to capitalize on underinsured households, and investors who act now will reap outsized rewards.

The Hidden $145K Paycheck

The $145K figure, calculated by Insure.com by tallying hourly wages for roles like childcare, cooking, and emotional support, reveals a stark reality: the average mother’s unpaid labor would command a six-figure salary if monetized. Yet, 18% of U.S. mothers remain stay-at-home parents, with their contributions unacknowledged in traditional financial planning. The societal cost of replacing this labor? Over $184,000 annually per household—a number insurers are now forced to confront.

This gap is a goldmine for insurers willing to innovate. Traditional policies undervalue caregivers, leaving families exposed. For example, a stay-at-home mother’s sudden death could force her spouse to spend $184K yearly on childcare and housekeeping—a financial black hole that existing term life policies often underfund.

Insurers Leading the Charge

The firms best positioned to profit are those adapting to caregiving’s economic reality. Legal & General America (LGA) stands out for its affordable term policies and focus on closing the gender gap. Its $8.18/month starter plans for young adults lock in low premiums before health risks materialize—a lifeline for caregivers who’ve been priced out of coverage.

Meanwhile, Prudential’s CPA Life Plan, though originally designed for professionals, offers a template for broader customization. Its $2.5M coverage limit and flexible beneficiary options could easily be expanded to include special needs trusts—a critical tool for parents of children with disabilities. These policies allow assets to be held in trust, preserving Medicaid eligibility while ensuring funds are managed responsibly.

The Gender Insurance Gap: A $30B Opportunity

Women face a dual disadvantage: they live longer but are underinsured due to undervalued caregiving roles. The average woman holds $400,000 less in life insurance than men—a gap insurers are now targeting.

Legal & General’s emphasis on pre-pregnancy coverage and its leniency toward mental health conditions (common among caregivers) are game-changers. By offering preferred rates to applicants with managed conditions, LGA reduces barriers for mothers navigating stress and anxiety. Meanwhile, its whole life policies with cash-value growth provide a hedge against rising childcare costs—a critical feature as inflation eats into household budgets.

The Investment Case: Why Act Now?

Three trends converge to make caregiving-linked insurers a buy:

1. Policy Evolution: States like California are piloting caregiver credits for pensions, a trend that will pressure insurers to innovate.
2. Demographics: The U.S. has 84 million caregivers, 66% of whom are women. As dual-income households normalize, demand for coverage will explode.
3. Regulatory Momentum: The SECURE 2.0 Act’s expansion of special needs trusts will drive policy sales, as families seek to protect assets without disqualifying public benefits.

Bottom Line: This Is a Multi-Decade Theme

The $145K Mom Salary isn’t just a headline—it’s a catalyst. Insurers like Legal & General and Prudential are building moats by monetizing society’s growing recognition of caregiving’s worth. With 40% of households still underinsured and regulatory tailwinds accelerating, this is a sector where early movers will dominate.

Investors should act now: allocate to insurers prioritizing caregiver policies, special needs trusts, and gender-equitable pricing. The caregivers’ economy isn’t just growing—it’s demanding a seat at the table. And those who insure it will be the winners.