Why Stay-at-Home Parents Also Need A Life Insurance?

Why Stay-at-Home Parents Also Need A Life Insurance?

Fri, Feb 12, 2021 4:19 PM

Life Insurance

You're probably well aware that if anything were to happen, a parent with a job outside the house would most likely need life insurance to cover their loved ones. But it's not just breadwinners that need coverage-parents stay-at-home do, too.

Here are some examples why

 

To cover the costs for funerals

 

Would you believe that the typical funeral runs between $7,000 and $10,000? And the cost of burial, headstone, and other costs may not be covered by that. Many families want to respect the memory of a loved one but are having difficulty finding the funds to cover all the expenses. The payout from a life insurance policy will, happily, help cover final wishes.

 

To compensate for the worth of their labor

 

Stay-at-home parents are caretakers, tutors, chefs, housekeepers, drivers, and so much more. And all that work comes with a price tag: Stay-at-home-parents contribute to their households the equivalent of a $162,581 annual income. A surviving wife would be on the hook for a slew of fresh bills that the stay-at-home parent had already shouldered if the unimaginable were to happen.

Term life insurance is normally a quick and inexpensive way to get a large amount of coverage like this for a particular period of time, such as 10 or 20 years, even before the mortgage is paid or the children are grown and gone.

 

To take into account the contributions from any potential income

 

When their children are older, many stay-at-home parents return to the workforce. Life insurance could help fill the gap that would have added to the family from their potential earnings.

 

Why Stay-at-Home Parents Also Need A Life Insurance?

 

In order to leave a legacy

 

Life insurance premiums may be used to leave a valuable charitable donation if a stay-at-home spouse has a passion for a place of worship, an alma mater, or another non-profit organization.

 

To boost savings

 

Permanent life insurance, which provides lifetime security as long as you pay your premiums, can provide additional living benefits such as the opportunity to create cash value. This can be used in the future, from making a down payment on a house to paying for college tuition, for whatever reason you want. Bear in mind, however, that if not paid back, withdrawing or borrowing funds will decrease the cash value and death benefit of your policy.

 

To ensure insurability

 

In a moment, your health can change. When you're young and safe, having a permanent life insurance policy means you'll have lifetime coverage. Then you're not going to have to think about having a health problem later on that will make it tough or even impossible to get life insurance.

 

Tax-free benefits

 

One of the few ways to leave money for loved ones that are normally income-tax-free is life insurance.

 

To give peace of mind to loved ones

 

It is still painful enough to lose a parent and partner before their period without having to think about unsettled debts, costs of childcare, funeral bills, and other expenses.

 

For the payment of some debt

 

There are plenty of ways to owe money, from student loans to credit card debt to an informal loan from a family member. Life insurance will help settle any debts left behind, so that loved ones do not cause stress.

 

As you can see, stay-at-home parents' life insurance is just as important as it is for parents who work outside the home. Schedule a time to chat with an insurance agent in your neighborhood and learn about your choices and get a coverage that suits your lifestyle and budget.

 

Let's estimate Life Insurance you need.

Get A Free Quote

 

 

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