Find out if life insurance quotes are necessary for stay-at-home parents and learn more about calculating life insurance policies for parents
Being a parent encompasses a whole host of responsibilities. Taking care of a child is not an easy task. During the course of a day as a parent you may be a tutor, a motivational speaker, a chef, a coach, and a driver to many weekly activities. With so many responsibilities, many stay-at-home parents wonder if they will need to look into life insurance quotes even though they aren’t working a 9-5 job. Today, we are exploring life insurance policies for parents and why life insurance is necessary for stay-at-home parents.
Why Do Stay-at-Home Parents Need Life Insurance?
Life insurance quotes and policies for stay-at-home parents will help keep your family financially stable no matter what happens
As a stay-at-home parent, it is easy to assume that you don’t require life insurance because you don’t have a consistent income. However, just because your job isn’t monetized doesn’t mean you shouldn’t purchase a life insurance plan. Stay-at-home parents have so many responsibilities that are not easily replaced in the event of their passing. Let’s take a look at just a few of the many services and skills that would need to be supplemented by a life insurance policy for parents who stay at home:
- Childcare
- Teacher or Tutor
- Housekeeping
- Maintenance person
- Driver
These responsibilities are what allows your spouse or partner to go to their job each day. Without the stay-at-home parent, it would be impossible for the other parent to earn money for the household. Because of this fact, a life insurance plan for stay-at-home parents is essential.
How Much Insurance is Needed for a Stay-at-Home Parent?
Find out how you can choose the best life insurance quotes for stay-at-home parents
When a parent has a job with a yearly salary, calculating a ballpark estimate of the amount of life insurance you need is relatively easy. As a general rule, the amount of term life insurance for parents should be about 10x the amount that you make each year. That is of course factoring in other costs like inflation, education, and any other anticipated expenses.
Though there is not an exact way to calculate the amount of life insurance for a stay-at-home parent, there are a few ways that you can estimate. The right life insurance quotes for parents who stay at home should be a 15 to 20 year plan, depending on the age of your children. Life insurance for stay-at-home parents, unlike with working parents, doesn’t need to last longer than 20 years. By the time your term life insurance plan has expired, your children will be on their own living as adults. Once your kids are out on their own, you will no longer need to financially compensate for the responsibility of a stay-at-home parent.
Now that we know exactly how long your policy will last, it’s time to figure out how much life insurance to purchase. The current estimate is anywhere between $250,000 and $400,000. In the next section, we’ll be going over the different factors that affect how much life insurance you should purchase.
What are the Different Factors that Affect How Much Life Insurance You Should Purchase?
Life insurance quotes for stay-at-home parents are not universal
When you are searching for a term life insurance quote as a parent who stays at home, there are a few things you consider in order to settle on a total amount. The first thing you need to consider is the expected cost of childcare. To calculate the cost, research the weekly cost of childcare — usually anywhere between $200 to $600 per week. That amounts to anywhere from $15,000 to $30,000 per year depending on the type of childcare you choose.
Next, you need to consider your children’s education. Depending on how you choose to educate your child, you will need to make considerations. For example, will you be sending your child to public school, private school, or homeschool? These are cost considerations you need to make, especially for private schools as tuition is often around $10,000 per year.
You should also think about the cost of maintaining your household. In the event of your passing, someone will need to take care of your home while your spouse works. Depending on where you live and the size of your home, a housekeeping service can get expensive. To calculate this dollar amount, research cleaning and laundry services in your area and come up with a rough yearly estimate. Then, multiply that yearly estimate by 10.
After you have taken all of these different factors into consideration, you are ready to settle on a life insurance quote for parents who stay at home. Remember, life insurance provides for your family’s future, which means even stay-at-home parents require life insurance while your children are young.
‘Contributed Post’
