As a stay at home parent, do I need life insurance for myself?
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Asked April 7, 2014
Even though a stay at home parent does not usually provide any actual income to the household, their contribution is still a large one, and can be equated with dollar values. If that parent were lost, the home would incur much higher costs to replace the services performed by the stay at home parent, and those costs, as well as the emotional loss, can be covered with a life insurance policy.
The stay at home parent provides childcare as a full time, round-the-clock occupation. Unlike a regular job, the stay at home parent is on duty all day, even in the middle of the night. Without them, the children would have to be cared for by someone else, often at a cost of hundreds of dollars a month, per child. When calculating life insurance for a stay at home parent, the cost of child care needs to be added up to account for the entire length of time until the child is able to take care of them.
The loss of a parent is a huge emotional strain on the family, and should also be included in the life insurance calculations. While no amount of money can replace a parent, you can still stipulate a cash value to help get the surviving family through.
Not only is the loss of the parent a concern, the loss of participation is a factor as well. Someone still has to clean the home, take the children to the dentist, attend extra-curricular activities, and provide moral and supervisory support. Calculating the values of these things can be difficult, but they should be included in the face value of the life insurance policy.
In many ways, the value of a stay at home parent is higher than the money brought home by the primary income earner. After all, if the employed parent loses her job she can always find another one and perhaps get more pay in the bargain, while the loss of a stay at home parent creates ripples of loss and cost that echo through the years, making a life insurance policy for stay at home parents a necessary expense to protect the family.
Answered April 7, 2014 by Anonymous