The working parent isn’t the only one that should purchase a life insurance policy; both parents are equally as valuable to a family, but often the value of a stay-at-home parent is overlooked. This is presumably due to the fact that the stay-at-home parent is not generating income, but it is important to understand the expenses that would be placed upon the family in the event of the absence of the stay-at-home mom or dad.
Stay-at-home parents are truly a financial value to a family – especially families that have several small children or even a child with diabetes.
Making the decision to purchase life insurance for the stay-at-home parent is one of the best investments that you can make when considering your family’s financial security and preparedness.
Stay at home parents are major providers within a family. While they aren’t salaried and aren’t bringing in tangible income, their contributions are endless. For a family with several small children, many families cannot afford the cost of daycare expenses, which is usually the primary reason that originally prompts the parent to assume their role as a stay-at-home parent.
In a country where the average cost of daycare for just two children is $8,000-$28,000, it’s easy to understand the substantial financial benefit of a parent who cares for their children at home instead of maintaining a presence in the workforce. It is important to understand the amount of financial burden that a family would experience in the event that the stay-at-home parent passed, such as childcare expenses would immediately break any budget that has once been sustainable.
Lost Wages by the Working Parent
An often overlooked expense is the loss of wages that the working parent would endure while taking the necessary time off to mourn and get the family’s affairs in order after the loss of a stay-at-home parent. While most jobs allow a certain amount of vacation time that the working parent could request, that may not be enough time to develop a new routine and adjust to life without a second caregiver present in the home.
In the event that the working parent would need to forfeit wages for a portion of time in order to prioritize the family’s adjustment process, it is important to be mindful of the financial nest egg that the family would need to be able to take the time that they need.
Pay Off Debt
Most people have some form of debt. Whether it be car payments, house payments, credit cards, or personal or student loans. Your family may find it beneficial to include the total of outstanding debt within their figured approximation of how much life insurance they would like to apply for. In a time of loss where the family will already be consumed with trying to adjust emotionally and mechanically, the ability to remedy outstanding debt can alleviate some of the hardships that the family will have to endure.
When something as difficult as a loss occurs, it can be somewhat comforting to know that certain things are taken care of. Including the cost of college for your children in the total of the policy amount you apply for can provide your children a great financial start to life. Not having to worry about tuition can alleviate the financial cost that the sole living parent would feel responsible for, and would give the children a financially sound start in life so that they would never feel the need to choose between an education and substantial debt.
This isn’t something that all families feel the need to add into their coverage amount, but it is certainly worth considering.
In-Home Help: Cooking, Errands, Housework
Parenting isn’t easy. It’s a lot of work for two parents who work well together to stay on top of all of the cooking, cleaning, and home maintenance and childcare. Losing the input of a parent can be overwhelming for the living parent – not to mention exhausting. It’s beneficial to consider the possible help that the living parent may need to hire. A nanny, assistant, or maid service can be extremely costly. Accounting for the expense in your coverage amount can make life after a loss much easier for the remaining family.
We hope that this article will help spark the conversation to obtain a life insurance policy for the stay-at-home parent in your household.