Reasons Why Stay-at-Home Parents Still Need Life Insurance
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The common statement is that parents who prefer to stay at home and take care of the family and children do not actually require life insurance, as they are not actually earning for the work they do. But stay at home parents require insurance too and the primary reason for them to buy insurance, is not to disrupt the financial health of the family, but ensure that the other members in the family continue enjoying the same lifestyle, even after the parent is not available to take care of them.
Reasons Why Insurance is Required for Stay at Home Parents
The loss of the partner can never be compensated, but the monetary benefits from their insurance can mitigate the grief and reduce the financial burden on the partner. The reasons why insurance is required for stay at home parents are as follows.
1. They Also Offer Financial Support for the Family
Though they don’t bring home a paycheck they substitute paid labor to cook and clean and to take care of children. If something has to happen for the stay at home parent, then it incurs a huge expense to hire people to perform their job. If the parent has life insurance, then their death benefit can cover the cost of child care and other home maintenance works.
2. Reduces the Burden On the Breadwinner
The death benefit of the stay at home parent will help the earning member in the family to provide for the education of the children, to pay off debts and loans and also provide for the monthly expenses of the family. The breadwinner will not be further burdened with these expenses, if they have ample sum at hand.
3. Contributes for Future Planning
Considering that both the parents have equal responsibilities to plan and save for the future of the children, upon the sudden death of the stay at home parent, their death benefit can help in fulfilling these plans.
4. The Benefits of Life Insurance Outnumbers the Premium Amount
The monthly premium of life insurance is affordable and can be paid with small savings. The expenditure outnumbers the overall benefits it renders and it can be well realized in a term life insurance plan. Getting coverage for both the partners under the same plan will cost less than choosing separate plans.
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How Much Coverage Does a Stay at Home Parents Require?
Generally, the amount of insurance that a person requires will be calculated against their annual income. It could be tricky to calculate how much insurance a stay at home parent requires as they are not earning. But the coverage amount required can be calculated based on the following factors.
- Size of the family and the number of children in the family.
- Cost of child care and part time babysitting in the locality
- Cost of domestic help to replace the current work that the stay at home parent does, such as house cleaning, lawn mowing, dishes and laundry cleaning etc.
- Income of the parent, if they wish to resume to work.
It is better to work with a financial advisor to determine how much coverage is required for the stay at home parent.
Must Check
Also Read:- Five Reasons Why You Must Buy a Life Insurance Plan
Bottom Line
Thus, stay at home parents should get insured to enjoy complete peace of mind and to stay determined, to not compromise the stability of the family, no matter what happens.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
