When considering the purchase of life insurance, there are numerous reasons why people buy coverage. One of the biggest of these is to replace the income of a breadwinner should he or she pass away unexpectedly. Yet, what people oftentimes do not think about is insuring the life – and the subsequent loss – of a stay at home parent. And not doing so could be a big mistake.
Should a family endure the loss of the stay at home parent, this could cause a great deal of hardship – and expense – as well. For instance, it is important to consider the numerous jobs of the stay at home parent. These include cooking, cleaning, carpool to school and other activities for the children, and overall child care. If one were to add up the cost of hiring outside help to take over all of these tasks, the dollar figure could be quite high. With this in mind, the stay at home parent should not be overlooked for life insurance coverage.
Considering the Amount of Life Insurance Coverage on a Stay at Home Parent
Determining just how much life insurance coverage will be needed for a stay at home parent can be difficult. However, there are a couple of different ways that you can come up with a good estimate.
One way is to get an approximate figure on how much each of the tasks would be worth if you had to hire someone to do them. For example, if you needed to go out and hire a housekeeper, cook, tutor, and more, you can then put an estimated dollar figure on how much you would be paying out each year for someone else to perform these jobs. Then, depending on the age of your children, you can calculate the approximate number of years that these tasks would need to be performed.
A second way of coming up with a dollar figure would be to simply take the amount of life insurance that the wage-earning parent has and then double it for the stay at home parent. The reasoning behind this is so that the surviving parent can make his or her career secondary for several years should the stay at home parent pass away. During this time, the wage earning parent could then stay home with the children and live off of the life insurance proceeds while focusing on raising the children instead.
The type of coverage that you purchase will depend upon your specific needs and what you want from the policy. For example, term life insurance will provide you with pure death benefit protection only. These plans are considered to be the most basic form of life insurance coverage that there is, with no “bells or whistles.” However, this type of life insurance is also extremely affordable – especially for those who are young and in good health.
Permanent life insurance will provide you with both a death benefit and cash value. This will allow you to build up tax deferred savings over time so that you may either borrow or withdraw funds in the future if you need them.
In any case, it is absolutely essential not to overlook having life insurance protection in the event that something happens to a stay at home parent – regardless of how healthy or young that person may be. You never know when an unexpected accident or illness may occur. And if it does, the proceeds from a life insurance policy can be just the thing that can allow you to continue on without having to drastically change your – and your children’s – current lifestyle. This is especially important in what will already be an extremely difficult time for them.
Where to Find Life Insurance for a Stay at Home Parent
When shopping for life insurance coverage for a stay-at-home parent, it is a good idea to first shop around for a policy that will best suit your specific needs and budget. In doing so, be sure that you work with a company that has access to more than just one insurer.
We work with many of the best life insurance companies in the nation – and we can help you in comparing not just insurers, but also the many different life insurance policies, policy benefits, and premium quotes.
All of this can be easily accomplished – within seconds – directly from your home computer, and without ever needing to personally meet with a life insurance agent. In order to get started, all you have to do is just Click Here.
We realize that as you go through the process of determining your coverage needs and comparing different life insurance policies, that you may have many questions. If so, we are here to help. Please feel free to contact us directly, toll-free, at 864-491-5785 with any question or concern that you may have and we will be happy to assist you.