Insurance For The Stay At Home Parent
As a stay at home parent, you might believe that your lack of income means that you do not need an assortment of insurance products. Should catastrophe strike, this line of thinking can put the well-being of your family in danger. Adding life insurance and disability insurance keeps your family protected when life throws a curveball.
Life Insurance
Many stay at home parents think that only their working partner needs life insurance. Even though stay at home parents may not bring in an income, they provide a valuable service to their family. The average cost of childcare in the United States for a child under five years of age is $11,666 a year or $972 a month. If you pass away and do not have life insurance, your spouse must figure out how to afford almost $1,000 more a month in childcare for a single child.
Having a stay at home spouse also helps families save money on other costs, such as costs for eating out, commuting expenses, and grocery expenses.
How Much Life Insurance Do I Need?
To determine how much life insurance you need, consider what expenses your spouse would have to pay if you pass away. Some items to consider are daycare, preschool, before and after school care, funeral expenses, and increased household bills. The amount of life insurance should be able to comfortably cover all of these expenses until they are no longer required.
Another thing to consider is your spouse's job security. If he or she has an unstable job, it is wise to opt for additional life insurance to help your family survive an expected job loss. When your family is grieving, the last thing they need to worry about is finances.
Disability Insurance
The idea of a stay at home parent purchasing disability insurance is a new notion, but it makes sense: if you are permanently disabled, your family will need additional help to keep the household running smoothly. If are unable to care for your children, your family will have to hire outside assistance to complete the work that you used to do.
Though most disability insurance policies are designed to replace income, there are policies designed specifically for stay at home parents who do not bring home an outside income. When selecting a policy, you can choose the appropriate amount to help cover the expenses that you will incur if you are temporarily or permanently disabled.
Stay at home parents serve a valuable role in their family unit. When a stay at home parent dies, this devastates a family in more way than one. Limit financial devastation by purchasing the right insurance products to protect your family against the unexpected.