Understanding Insurance Issues

3 Reasons Stay-At-Home Parents Need Life Insurance Policies

Some people tend to believe that life insurance policies should be reserved for the individual in the family that is financially supporting the household rather than the individual staying at home. However, when you really sit down and think about it, the stay-at-home parent is just as financially supportive of the household as the only that is physically bringing in the dough. For example, the stay-at-home parent cooks, cleans, teaches, and takes care of the kids – all of which are considered jobs that earn people money. If this stay-at-home parent were to pass away, the family would be found in a financial bind. Here are a few reasons why a stay-at-home parent should consider taking out a life insurance policy:

Reason #1: The Policy Could Help Out with Child Care.

Without you in the picture, your family will suffer dramatically, and the biggest way they will do so is with child care. Child care does not come cheap, averaging about $10,000 per year for infants. If your spouse works in the evening and requires care at night, there is a good chance that the cost of child care will be greater.

Reason #2: The Policy Can Help Out with Education.

If your children are homeschooled, then your children will lose their teacher if you pass away. Therefore, a private teacher will either need to be hired or your children will need to be put into a private school if you and your spouse have decided to keep them out of public schools. Either way, it will be costly, but a life insurance policy can help cover those costs. If the children are already grown by the time you pass and are in college, then it may help with their college education so that they don't have to accumulate a mountain load of debt to worry about when they graduate.

Reason #3: The Policy Can Help with Funeral Expenses.

The average cost of a funeral is between $7,000 and $10,000, which has increased in the last several years. For many families, that is a cost that is far out of their budget. This is why it is important to consider taking out a life insurance policy that can help cover that expense when your pass away. It can help give you peace of mind knowing that your family won't have to worry about dealing with the pressure of securing the finances for your funeral as they are grieving your loss, while also dealing with all the new changes that are occurring in their lives as a result of losing you.