Stay-at-home parents play a big role in keeping a tight ship running at home. The major contentions for them, apart from their responsibilities, are related to finances and how matters will be dealt with in case of premature death. For this reason, there are some of the best life insurance that they can use:
What Aspects Do Stay-At-Home Parents Need Life Insurance for?
There are many aspects that you’d want life insurance for:
Childcare
Childcare expenses can be fairly taxing for one parent to manage on their own. Care.com suggests that for an infant, the average daycare center can cost around $200 per week. Nannies can charge around $600 per work.
Factoring in 50 out of 52 weeks in a year, you’re spending between $10,000 and $30,000 for one child’s care. Depending on what part of the country you’re in, this number can fluctuate a fair bit.
Education
Many children in America are homeschooled. In this scenario, the stay-at-home parent is responsible for ensuring various aspects of a child’s education. If something happens to the stay-at-home parent, the child might have to attend school. Private schools can be fairly expensive, and the national average tuition is around $10,700. If you have multiple children, this number can be fairly high, not including additional costs.
Household Duties
A stay-at-home parent has numerous responsibilities that will require an additional resource to fulfill if the person cannot attend to them. These include aspects like laundry and cleaning, among others. The numbers for these services vary heavily depending on what part of the country you live in and which a reliable life insurance company can guide you about.
How Much Coverage Is Needed?
The truth is that everyone has different needs, and what type of policy is right for you will depend on various factors. But generally, getting a 15- to 20-year policy between $250,000–400,000 is the way to go. By the time the policy is over, your children will be old enough to care for themselves.
The Type of Life Insurance You Need
There are two primary types of life insurance: term life and permanent life. A term life policy offers coverage for a limited period, anywhere from 10 to 30 years. A permanent life insurance policy provides lifelong coverage.
Why Pick Term Life
For most stay-at-home parents, a term life policy will be a better option as it’s a more affordable option. A fit 30-year-old person can opt for a 20-year term life policy providing a $500,000 death benefit. The premium can be around $20 to $30 a month.
Experts recommend you pick a term that’s long enough for your kids to finish college. This makes it more convenient to pick a proper plan that’s suited to your needs.
Why Permanent Life Insurance
A permanent life insurance policy, often called whole life , or universal life, is more expensive than a term life insurance. They’re great for affluent people as well as people that are financially sound with aspects like college education, retirement savings, and other funds taken care of.
Permanent life insurance policies build cash value, allowing you to use that saved-up amount in the future. People generally look into retirement income policies and similar options, especially if they can’t look into workplace retirement savings plans.
Things to Know
Be aware that after the duration for which the term life insurance policy was valid, you get no money. Regardless of whether you used the policy or not, you don’t have any advantage from it once it’s over. On the contrary, a permanent life insurance policy can be fairly costly, especially for families that are struggling financially.
A viable workaround for those that want to get a permanent life insurance policy but can’t pay for it at the moment is to look into a term life insurance that can, later on, be converted into a permanent life policy.
Get in Touch with Us
As a stay-at-home parent, it becomes necessary that you look into the right insurance policies to help support your family. Experts recommend that you work with a life insurance agency with whole life insurance and final expense coverage. Get in touch with us at Franklin Life & Annuity right away. If you need life insurance for the entire family or require final expense insurance, our services can assist you.