Why Stay-at-Home Parents Should Consider Life Insurance

 

mother a housewife with a baby  fold clothes

If you’re a stay-at-home parent, you take care of the kids, the housework, the groceries, the cooking, the taxi driving, the accounting and more. But what happens if you die? What will happen to your loved ones? Unfortunately, most stay-at-home parents don’t have a plan for this. Unlike the family breadwinner, they tend to be uninsured.

As a stay-at-home parent, you might not make money, but the things you do every day would cost a lot to replace. According to salary.com, a typical stay-at-home mom’s work equals a $112,962 annual salary. In other words, what you do is incredibly valuable and should be covered if something happens. Here are some of the ways life insurance can benefit your family:

Childcare Costs

Without you around to take care of your children, one of the biggest expenses your family will have is the long-term costs of child care. Someone must watch your young kids while your spouse is working. Your children also need to be taken to school, the doctor, sports practice, etc. Somebody must drop them off and pick up them up if you aren’t around. That likely means hiring a caretaker. That’s a line item your family did not have in the budget before. Life insurance can help provide the resources you may need to make sure your kids are looked after properly.

House Work Costs

Maintaining a home by cleaning, shopping and cooking is a big job for you. If you’re gone, some of these chores can be covered by your spouse when he or she isn’t working, but chances are good that help will be needed. This can be a big expense without life insurance to cushion the financial blow.

Emotional Distress

When a parent dies the family left behind will face a difficult adjustment period, emotionally and financially. Life insurance can help make that process a little easier for your family. Insurance payments could help your loved ones deal with pain and loss through counseling. They can also allow your spouse to take time off after you’ve passed away, or give him the option to work fewer hours, temporarily or permanently. As your family adapts to its new circumstances, life insurance can provide the time to make changes without worrying about money.

Debts

You and your spouse probably have joint accounts and share debts, like a mortgage or student loans. You may also have debts of your own. Those debts will be much harder to pay off if you are no longer around, due to all the extra costs outlined above. Life insurance could help make payments more manageable for your family.

Purchasing Life Insurance

If you are looking to buy life insurance you have a few options. As a stay-at-home parent, you may be able to get coverage by buying a “rider” on your spouse’s policy. Some riders offer the exact same coverage that your spouse enjoys, but not all. They may only offer limited coverage. A rider can also be more expensive than purchasing a standalone policy. Another option is whole (or permanent) life insurance, which offers lifetime coverage at a level premium. This life insurance has potential to build in cash value. Finally, there is also term life insurance, which is a relatively large amount of insurance purchased for a low initial premium. This is temporary coverage that you pay for only when you really need it.

When considering life insurance be sure to talk to a financial professional about your specific needs and how life insurance can help.

B182-MN-5-17

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