Life Insurance for Stay at Home Parents
This article might be a little different than the average informational we normally share. We’ve briefly brushed on this topic, but this subject deserves to have a little more light shed on the details. Most people understand the significance of Life Insurance for the breadwinner of the house, as that person’s income needs to be protected in the event something awful happened to keep up with the household bills, mortgage and other expenses. Not a lot of people consider the stay-at-home parent, as there is no physical monetary income in that position, however, what people should consider is that if something were to happen to the stay-at-home parent, the services that that parent provided would now have to be either picked up by the surviving parent, or outsourced to others, typically requiring financial compensation for those services.
Really taking a step back and looking at the services provided to you by a stay-at-home parent, you can see how if that person were no longer able to fulfill their duties should they pass, those tasks and services would quickly add up to be expensive for the family, who is already experiencing pain, heartache, and burden.
Aside from the cost of final expenses, like funeral and burial, which, let’s face it, is already something really stressful that can significantly affect a family’s finances, especially if it was unexpected. It’s also important to remember that the stay-at-home parent typically provides a plethora of services, including cleaning services, meals, transportation, laundry, childcare, and pet care, and those are just the more common services that come to mind. These services can add up quickly, especially in instances where outsourcing is required. The stay at home parent provided cleaning services, laundry, acted as a de facto nutritionist and chef, as meals are bought and prepared by this person typically. Even more-so, administrative purposes, academic advising, and other kinds of life guidance and life services are so hard to replace with one person, you may end up outsourcing to numerous people to replace the work that was done by one, which would continue to grow your expenses.
Childcare and transportation are usually the major players in the services offered by a stay-at-home parent, which can average out to hundreds or thousands of dollars a month just by themselves. Replacing those services is not easy, nor would it be feasible to expect the remaining parent to pick up the slack so to speak, as they are likely maxed out on time as it is from their work schedule and potentially on finances as well.
Having to pick up a second job is the reality for many surviving parents in this position. Paying for funeral expenses and the fast-rising costs of replacing the services once provided by the late parent, let alone making sure children get to and from school, events, and sports is almost an impossible task. This is the consequence for parents who do not have a life insurance policy on the stay-at-home parent. On the surface, it could seem unnecessary, but when you take the time to really think about the massive hole it would leave, and the amount of burden it would place on the surviving parent and rest of the family, it suddenly becomes clear how much of a necessity it is.
As we have covered thus far, costs would increase quickly and exponentially, and those are just the more common expenses. Sometimes the deceased may have had debt, student loans, or other responsibilities that will now fall onto the shoulders of the surviving parent or their beneficiary. So, while it may initially seem practical to not cover the stay-at-home parent from an outside perspective, from the inside, you can see the value for your family, especially when you consider the effects is would have on the loved ones you leave behind. When your family or loved ones are already going through the unthinkable, life insurance for the stay-at-home parent is a must, so the surviving parties aren’t overburdened with the stress of so much added expense and time that the late parent once covered for free.
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Statistics show that the average stay-at-home parent is worth $112,000 to $160,000. This makes sense when you factor in all the time spent for services provided, in order to allow the rest of the family dynamic to function. Stay-at-home parents on average, work more than 90-hour work weeks. Each stay-at-home parent encompasses about 10 jobs within.
Definitely consider this information when shopping for Life Insurance. The cost is usually quite affordable, especially for healthy parents in their 30’s or 40’s, but the outcome should you need to use it, is priceless. If you are considering adding a stay-at-home parent to a life insurance policy, give us a call at Group Plans. We would be happy to assist you in finalizing the safety net that will catch your family in the event of an untimely death, so you’re not burdened by piling expenses during your time of loss. The conclusion we hope you take away from this article is the true value and importance of having an active Life Insurance policy on a stay-at-home parent, that can ultimately be the safety net for your family to be able to continue the way of life they’ve grown used to!