When parents think about securing life insurance, many assume that only the family breadwinner needs coverage. However, this overlooks all the value that stay-at-home parents provide for their families.
Here are some of the many reasons why stay-at-home parents need life insurance too.
To Cover All the Services They Provide
Just because stay-at-home parents do not bring home a paycheck doesn’t mean that they don’t contribute. Stay-at-home parents wear many hats, including caretaker, cook, housekeeper, chauffeur, and so on. If a stay-at-home parent were to pass away, then their partner would have to pay for all the services they provide. Because this would cost a considerable amount of money, stay-at-home parents should secure a life insurance policy to offset the expense. Term life insurance policies are a relatively easy and affordable way to get life insurance coverage to last you until your kids are grown and out of the house, your mortgage is paid off, and your debts are taken care of.
To Cover Their Future Income
While many stay-at-home parents stop working when their children are young, they return to the workplace once their kids are older and go to school. By securing life insurance now, you can ensure that you have coverage for the future income that you will contribute to your household.
To Pay Off Their Debts
From student loans to credits card debt, many stay-at-home parents have debt that does not disappear when they die. If your parents or other loved ones have cosigned on your loans, then they may be on the hook for paying it back on your behalf. To ensure that your loved ones do not have the shoulder the financial burden of your debt, make sure that you secure enough life insurance to cover the combined cost of all your debts.
To Cover Child Care Costs
One of the biggest long-term expenses of your family is child care costs. The average cost of center-based child care is $11,896/year for infants, $10,158/year for toddlers, and $9,254/year for preschoolers. If your spouse cannot take care of your children after your death, sending them to the daycare center is the only option, but it can be expensive if he is the only earning person. Therefore, buying a life insurance policy that covers child care costs will help you in such circumstances.
Create an Inheritance for Your Children
Even if you have no assets or cash to pass to your children, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. Giving your kids a portion of your policy benefits gives them a kick start when they become adults.
To Pay Final Expenses
Buying life insurance for a stay-at-home parent is essential to cover final expenses such as funeral and burial costs, federal death taxes, and probate and estate administration costs. By purchasing a life insurance policy, you can have peace of mind knowing that your family will be financially taken care of even in your absence.
These are some of the reasons why stay-at-home parents need to secure life insurance. Do you need help securing the right life insurance policy? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your coverage needs today.