6 Reasons Why Stay-at-Home Parents Need Life Insurance
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A stay-at-home parent plays a core role in the smooth running of a household. As such, their value can’t be quantified. They indeed bring no paycheck at the end of every month, but their services are worth more than any paycheck in the world. Read on to find out why a stay-at-home parent would need life insurance coverage.
- It Can Cover Your Kids’ Education
For those parents who prefer homeschooling to attend public or private schools, the death of a stay-at-home parent could mean losing a teacher. This means that the remaining spouse can choose to hire a professional tutor or enroll their children in a public/ private school leading to an increase in the expenses.
The availability of the life insurance cover can adequately cater for the education expenses hence relieving the surviving spouse of an additional financial burden.
- Cater to Household Expenses
Some of the duties of a stay-at-home parent are cooking, doing laundry, tutoring the kids, nanny, cleaning, housekeeping, and many more. Upon the demise or incapacitation of the stay-at-home parent, the house duties may be outsourced to someone else for payment. The compensation received from the life insurance policy can be used to fully or partially pay for the outsourced services.
- Provide Childcare Support
With only the working parent alive, it means that they will have to either hire a nanny or take the kids to daycare. Either way, the money will be spent. If money from the life policy is available, childcare can easily be paid for without financially straining the family.
- It Can Be Given as Inheritance
Every parent wants the best for their children. They wouldn’t want their kids to suffer or struggle later on in their lives when they are no longer alive. That’s why parents can use life insurance compensation as an inheritance for their offspring.
- It Can Help Realize Future Plans
It’s the norm of every couple to make plans for theirs and their children’s better tomorrow. The demise of the stay-at-home parent can lead to increased expenses as everything they took care of in the home for free would now be paid for. This could halt the realization of the plans already made for the future.
The accessibility of the life insurance policy compensation can help secure the future of the family.
- Pay Off Debts
If there are any debts incurred before and or after the demise of the stay-at-home spouse, the money from the life insurance policy can be used to pay off the debts, thus bringing peace of mind.
Types of Life Insurance Policies for Stay-at-Home Parents
There are two major insurance policies to choose from. They include:
Term Life Insurance: It’s an insurance policy where coverage is provided for an agreed period. Upon the demise of the insured, his/ her beneficiaries receive a guaranteed amount as a death benefit.
Permanent Life Insurance: Also known as whole life insurance. It’s a coverage that doesn’t expire, and the death benefit comes with a savings component.
Factors to Consider Before Buying a Life Insurance Policy
- Cost of Insurance: Life insurance cost varies depending on the type of policy you choose and the amount of premium you settle for. A term life insurance policy is more affordable for most households compared to a whole life policy. This is because, besides the death benefit, permanent policy attracts other benefits, thus high premiums.
- Health and Age: A healthy and young parent is likely to pay lower premiums compared to an unhealthy and elderly parent for the same insurance policy.
- How Old Your Kids Are: If your kids are very young, the period covered by your insurance policy should go up to or slightly beyond when the children become independent. That way, they can study until college without a lot of difficulties.
- The Cost of Your Household Expenses: Research and calculate the cost of your expenses, from groceries to everyday chores that you handle. This will help you choose a good plan for your life insurance policy that won’t leave your family overburdened in case of any eventuality.
It’s the hope of every parent to see their children blossom into adults, attend their weddings, and become grandparents. As nature would have it, tomorrow isn’t guaranteed. Therefore, every responsible couple must ensure that the stay-at-home parent’s life is insured. That way, the future and peace of mind of the family are secured.
