Do stay home parents need life insurance?

Stay home parents life insurance needs Vs breadwinners:

Stay home parents need life insurance. Most people see life insurance to protect the family against the loss of the breadwinner of that family, and that is true. However, the fact is life insurance is a tool to protect your loved ones against any financial loss and to cover all liabilities in case you die. Let me put it this way if you are a contributing member of your family which means you are earning money or taking care of the house and your family, you do need to have a life insurance policy.

The breadwinner of the family must have a life insurance policy, since when they die the family will suffer financially. The payout of the life insurance policy will go to the beneficiaries tax-free and they can cover the liabilities and keep the same lifestyle until they find a way to earn more income or adjust their lifestyle.

Why stay home parents need life insurance?

Now, why do stay home parents need life insurance? Losing a stay home parent may not cause a direct financial hit, but it will create new expenses that you may never have to endure before. When a stay home parent passes, the surviving parent must come up with a way to handle work, taking care of the kids, house, cooking and cleaning.

House chores may easily be addressed depending on the surviving parent’s work schedule; however, looking after kids is no easy task. It requires time and energy and if you are working full-time that will be almost impossible especially if you have young children.

When losing a stay home parent, the surviving parent may rely on family members and friends to help with some of the tasks their stay home partner did, but that is not a permanent solution. At some point, the surviving parent must hire a nanny or send the kids to daycare which means you will need more money.

The importance of life insurance for stay-home parents.

Unfortunately, often people believe that if they are stay-home parents, they do not need to have any life insurance coverage as they do not see any dollar value. The fact of the matter is stayed home parents are working full time, but without receiving any income. Nevertheless, when a stay home parent passes there will be financial loss and that liability needs to be addressed and the family must be protected against it.

You may think that it may cost you a lot of money, but it is most definitely cheaper than you imagine. The coverage only needs to last for a certain period of time which means a term life insurance that is very price efficient will cover this liability for the necessary period.