Do Stay-at-Home Parents Need Life Insurance? 2 Essential Questions to Consider
Tireless workers and family heroes, stay-at-home parents provide invaluable support. Working around the clock shuttling children around town, cleaning, cooking, the job of a stay-at-home parent is rarely complete. From sunrise to sundown, stay-at-home parents are hard at work providing for their families. However, can this work be measured by numerical standards? After all, while stay-at-home parents do provide a tremendous amount of support, is this support enough to be justified financially?
These are questions that are often debated by stay-at-home parents when considering whether or not to get life insurance. While life insurance for the primary breadwinner of the household may be a no brainer, what about for the parent who doesn’t head into the office every day but provides countless services such as childcare and meal prep? Sure, most families may not consider these services by their monetary value, but that doesn’t necessarily mean that they cannot have financial implications.
If you’re a stay-at-home parent and are debating whether or not to get life insurance, begin by asking yourself the following.
1.) What is the total dollar value of the services you provide?
This question may seem a bit strange, but it’s something to consider. What is the dollar value for some of the tasks that you provide for your family each day? For example, consider these common tasks you do on a daily or weekly basis:
And this is just the beginning; the reality is that for the vast majority of stay-at-home parents they put in far more than 40 hours a week providing for their family. Although these may not seem like tasks you give a second thought to, it’s important to truly consider how much you’re providing for the ones you love most.
2.) Would your family be protected in the event of the unthinkable?
The next question is a tough one, especially for parents, but it’s a possibility that must be considered. While as a parent you do everything in your power to protect your loved ones, what if something were to happen to you? Although this may not be a likely reality, would your family be able to receive the support they need? Losing a parent can bring both emotional as well as financial challenges for families. The question then being, would your family be able to receive the necessary support they need even in the event of your passing? For many families without life insurance, this answer is, unfortunately, no.
How Much Coverage?
So, as a stay-at-home parent, the question then becomes, how much coverage do you actually need? While this is an individual decision, consider the following factors:
Age of Children
Are your children under the age of 18? If so, you’ll likely want more coverage than someone with children who are in their early 20s for example. Younger children often require more support, so if you have little ones at home, you may want to consider increasing your coverage.
Value of Tasks
Next, keep in mind the monetary value of the services you provide for your loved ones. While tasks such as doing the dishes or taking the kids to school may seem difficult to put a price tag on, consider the hourly or total costs of hiring someone else to do these tasks.
You will also want to keep in mind your current age and how that influences your life insurance options. For example, younger individuals typically need less coverage but are able to qualify for the best rates early on, so it often makes sense to get coverage early on.
You’re in great shape so there’s no way you need life insurance right? Actually, not so fast, even if you’re in the best shape of your life if you have a young family you may want to consider getting coverage regardless. Plus, you’ll lock in some of the best rates thanks to being in great shape.
It’s a tough call to make, but it’s an important decision to make as a parent.
If you’re ready to get started and explore your options, enter your zip code at the top to begin comparing quotes today.
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