You’re probably already aware that a parent with a job outside the house most likely needs life insurance to protect their loved ones in case something were to happen.
But it’s not just breadwinners who need coverage—stay-at-home parents do, too. We've outlined, to the best of our ability, the many reasons why all parents, regardless of whether they work outside the home or within it, should be insured.
Take a look. If you have any questions, don't hesitate to ask using the form at the bottom.
To replace the value of your labor
If you're a stay-at-home parent, you already have some idea of the value of your labor. A stay-at-home parent isn't just a parent. They're a caretaker. They're a tutor. A cook. A housekeeper. A chauffeur. And, most importantly, all of these jobs are done for (roughly) 365 days a year.
You couldn't put a price tag on it. But if you wanted to: Salary.com reports that stay-at-home-parents contribute the equivalent of a $162,581 annual salary to their households.
Now think about this.
The unthinkable happens. You die. (Sorry.) Now your surviving partner is on the hook for a slew of new expenses that you, the stay-at-home parent, previously shouldered.
With life insurance, that wouldn't be the case, necessarily. With a proper plan in place, those expenses are covered as quickly as they appear. You can read on, or you can take a deep dive into something called "term life insurance." Basically the gist of "term life insurance" is that provides a substantial amount of coverage for a specific period of time - such as 10 or 20 years. People use it until you pay off your mortgage or the kids are grown and gone.
Another thing to think about is that many stay-at-home parents who pass away would have returned to the workforce once their kids are older. A good life insurance plan could help bridge the gap that their future earnings would have contributed to the household.
To pay off your debts
Most people have debt. If you do, then you're like most people.
What happens to your debt when you pass away? Well, as you might expect, it still needs to be paid off. We're talking student loans. We're talking credit card debt. Even an informal loan from a family member is something that a good life insurance plan can help cover.
There are lots of ways to owe money. Life insurance can help settle any debts left behind so they don’t create (more) stress for grieving loved ones.
To pay for your own funeral
How much would you guess a funeral costs? The average, according to parting.com, runs between $7,000 and $10,000. And that may not cover the cost of the burial, headstone and other expenses.
Your funeral, which we can reasonably expect to be the biggest and coolest funeral that anyone has ever had, could easily cost way more than that.
All kidding aside, a funeral is an expense that can't be skipped. Every family wants to honor a loved one’s memory. Most, sadly, have trouble finding the funds to cover all the costs.
Fortunately, the payout from a life insurance policy can help cover your final wishes.
To leave behind a legacy
Everything we've said so far covers the necessities. But what about the idea of making a meaningful difference with your passing? What if you left the world a better place than you found it?
Think of a place or institution that you have passion for. It could be a place of worship. It could be your alma mater. It could be a nonprofit organization.
Life insurance proceeds can be used to leave a meaningful charitable gift. Imagine this: you could maybe even have a building named after you!
To boost your family savings
Similar to #4, this is another non-necessity - but something that could greatly improve your family's lives.
Permanent life insurance, which offers lifelong protection as long as you pay your premiums, may offer additional living benefits such as the ability to build cash value. This can be used in the future for any purpose you wish, from making a down payment on a house (!) to paying for college tuition.
Keep in mind, though, that withdrawing or borrowing funds will reduce your policy’s cash value and death benefit -- if not repaid.
To Guarantee insurability
As we all know, your health can change in an instant.
If a permanent life insurance policy is what you're going for, then you want to try and get it when you’re young and healthy. Why? Because this means you’ll have lifelong coverage.
That means exactly what it sound like. You won’t have to worry if - later on in life - you develop a health condition that would make it hard or even impossible to get life insurance.
To receive tax-free benefits
To have peace of mind
We put this bullet point last, but it might actually be the most important...?
If you're reading this, it's because you obviously have some concerns about some of the issues we've raised here. Losing a parent and partner before their time is hard enough. It's devastating. In fact, it's so devastating that most people prefer to not even think about it.
Knowing that you are insured, even as a stay-at-home parent, has the potential to give you some meaningful peace of mind. And, as a stay-at-home parent, you know that any amount of peace of mind is incredible.
So, dear reader, we hope that we've made it abundantly clear that life insurance for stay-at-home parents is just as important as it is for parents who work outside the home.
The next step for you, if you are uninsured, is to schedule a time to talk with an insurance professional in your community to learn about your options and get coverage that fits your lifestyle and budget.
More about that below.
How do I find a professional to talk to about this?
There's no better way to move forward with purchasing life insurance than to reach out to a qualified professional. The Hanna Agency has one endeavor, and that is to educate people about their choices. We are not trying to sell you insurance. However, we are able to, under certain circumstances, to do so, if that is what you want.
There are many ways to reach out to us. The fastest might be using the form below:
