Stay at Home Parents Need Life Insurance Too! Right?

Written by Rob Pinner

There is a big mis-conception out there that if you don’t bring actual dollar bills into the household, then you don’t need to have life insurance.  This couldn’t be more wrong.  Stay at home parents need just as much coverage as the breadwinners do.  I am going to outline some reasons for you to consider:

  1. Replacement of stay at home parents’ daily duties: Most stay at home parents’ daily duties include; keeping the house clean, paying bills, taxi service, child care, cooks, tutors, and mentor to name a few. I understand some call this being a good parent, but if this parent is not around someone will have to pick up the slack. Average cost of child care in the United States is $11,667 a year according to babycenter.com. According to several money articles, stay at home parent’s salary would range from $85K/annual to $162K/annual if you were to have to pay someone else.  This wide range determines on where you live and cost of living in those places.  The best product to protect your family and the cheapest would be term life insurance.  You can choose how long you want the coverage for, like 20 or 30 yrs.  Most choose the option that at least gets them past the time their children have graduated college and out of the house.
  2. Earnings from Future Income: A lot of stay at home parents do rejoin the workforce as their kids get older in life. Life insurance would close the gap that would have been brought in by their future income if your spouse were to pass away.
  3. Pay for Funeral Expense: The average cost of funeral today is closing in on $10,000. WOW, that is not cheap.  Unfortunately, the United States government only provides about $250 death benefit, and that’s if you have paid into social security, which a lot of stay at home parents may not have.  A low-cost term life insurance policy would could give you peace of mind.
  4. Want to leave a legacy: I am not sure about you, but if it’s in my power, I want to leave a legacy to my family. I think most people would agree with this if it was affordable. You can leave a legacy with life insurance. Charitable gifts can also be used as a legacy to the stay at home parents place of worship or alma mater.
  5. Pay off Debts: You may have a mortgage, student loans, car loans, or even credit card debt that needs to be paid off if you die. Life insurance comes tax free and can be used to pay any debts and help relieve this stressful aspect out of the equation for your grieving family.
  6. Children’s Education- If you have children, this will apply to you. Even with 2 of the parents working, it’s hard to have money saved for college education for your children. Imagine if you are a widowed parent, almost impossible. A life insurance policy could ensure that your children get every chance in life if you’re not around.
  7. Supplement Retirement Income- Since the stay at home parent probably will not be contributing to a 401-K, then a permanent life policy may be the answer. The policies have cash value build up and could be used to help supplement your retirement tax free.  Always consult with an experience agent before committing to this type of program.
  8. Peace of Mind- Probably the best reason for a stay at home parent is peace of mind. Having an insurance policy on the stay at home parent will relieve your mind of the 7 reasons above.

My thoughts

Life insurance on stay at home parents is a must, especially if you have children.  Stay at home parents are usually the back bone that keeps most households moving in the right direction.  The value of the stay at home parent is not a myth anymore and many articles have been written showing what the costs could be if you lost your loved one.  It can a pricey chance to take, so please if you are in this situation talk to an agent soon.  If you have any questions, please leave a comment below of give us a call.

Rob Pinner
Rob Pinner

I have been a licensed insurance agent for over 15 years.  If you have any questions or comments please don’t hesitate to give us a call.

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