It makes a lot of sense to have a life insurance policy on the primary breadwinner or in a married couple when both parties are contributing financially to the household. That being said, it is just as important for a stay-at-home parent to have a life insurance policy as well.
There can still be a tremendous financial impact on the family if a stay-at-home parent passes away. Few people, however, think about the important services provided by a stay-at-home spouse. The loss of him or her could mean significant expenses and frustration for the other spouse to have to identify appropriate childcare and household management services. Did you know, for example, that the price of full-time care for an infant in a daycare center could be as high as $15,000 a year? This is just one of the reasons why a stay-at-home parent should always have a life insurance protection.
There are all kinds of ways to figure out how to calculate the costs you might have to pay in order to obtain similar results as you would from a stay-at-home parent’s work. That being said, it can run anywhere from $50,000 to more than a $100,000. Remember that a stay-at-home spouse typically works more than 96 hours a week serving as chauffer, cook, teacher, housekeeper and even psychologist. You might think of the stay-at-home parent as the at-home CEO. In order to determine how much life insurance a stay-at-home parent needs, you need to think carefully about your own individual circumstances.
The annual financial value of services provided by a stay-at-home parent can be used to establish a face amount. There are two primary choices for a life insurance; temporary and permanent coverage. Temporary coverage gives you a set period of years during which if the insured individual passes away, the life insurance company provides death benefit outlined as the face amount on the policy. Sadly, families put in the position of copying without a stay-at-home-parent might not realize just how many functions were handled by this one person until it’s too late. Take the time now to appreciate and protect those valuable inputs and services provided by a stay-at-home parent by taking out a life insurance policy.
Term life insurance with or without exam is typically cheaper and easier to obtain. Permanent life insurance, on the other hand, lasts for the duration of the insured individual’s life, but it is typically more expensive. There are usually more riders and bells and whistles on a permanent life insurance policy, but most people choose a term life insurance policy because they are so much easier to get and so inexpensive. For a minimal cost associated with paying your term life insurance premium, you will get the peace of mind in knowing that the working parents will have the necessary support if something happens to the stay-at-home parent. Investigating your term life insurance options can start online and can be assisted tremendously by the help of an independent insurance agency.
