Parents play many different roles in a household – some work outside of the home, and some are stay-at-home parents. If you’re a stay-at-home parent, you may wonder if life insurance is necessary. At first glance, a life insurance policy may only seem appropriate for a parent who works since their income is at risk if they pass away. Yet, there are practical reasons why a stay-at-home parent could also benefit from a life insurance policy.
Benefits of life insurance for stay at home parents
Although a stay-at-home parent doesn’t have an income to replace, their contribution to their household cannot be underestimated. One of the main reasons for a parent to get life insurance is to help the family left behind continue to have the same lifestyle. Without the stay-at-home parent, the other parent would undoubtedly need to continue working to support children. For a stay-at-home parent, having the peace of mind that should you pass away, your family can maintain their standard of living is priceless. Helping your family function without you is an important reason you may want to invest in a life insurance policy as a stay-at-home parent. A stay-at-home parent has many unofficial jobs, which means others would need to be hired to replace these contributions.
How much life insurance does a stay-at-home parent need?
If you’re considering life insurance as a stay-at-home parent, then the next question becomes – how much life insurance coverage will you need? Since every family is different, there is no one-size-fits-all answer. The loss of a stay-at-home parent who has many responsibilities and is relied upon heavily by other family members may require more life insurance coverage. Here are some factors to consider:
Should a stay-at-home parent pass away, how much would child care expenses cost? If your children are younger and rely on the stay-at-home parent for daily childcare, the costs of either hiring a nanny or daycare need to be considered. If the stay-at-home parent is the primary caregiver while the other parent is at work, this is the type of expense that can quickly add up. Depending on where you live in Ontario, childcare can be an exorbitant expense. A national survey showed that Ontario cities have the highest median full-time costs for childcare centres and infants’ home care. On average, these costs were $1,774 a month or $21,288 annually. It also found that rural regions had childcare costs comparable to nearby cities.
2. Household Duties
A stay-at-home parent has many household duties; some of these could include: cooking, cleaning, and driving children to their extracurriculars and appointments. These are all potential costs that may need to be covered should they pass away. Consider how much these tasks cost where you live. Whether hiring a cleaning person or a cook, these costs should be factored into how much coverage a stay-at-home parent may need.
If the stay-at-home parent is your children’s primary educator, whether it’s early childhood education or homeschooling, you should consider the cost associated with replacing this education. Otherwise, you may need to consider other options for your child’s education, for example, the public school system or private school.
When to get life insurance as a stay at home parent
If you’re planning on having children in the future, you may want to consider getting a life insurance policy earlier in life. If you choose a permanent life insurance policy when you’re younger and healthier, you can often secure a more affordable rate. You can also secure your life insurance policy when you start having children. At this stage, you can choose whether you want permanent life insurance or coverage for a specific length of time, term life insurance.
How to Purchase Life Insurance for Stay at Home Parents
If you’re considering purchasing life insurance as a stay-at-home parent, working with an insurance broker can help simplify the process. An insurance broker will work in your best interests to find a policy that fits your unique circumstances and budget. The team at Keller & Associates Insurance Brokers has the knowledge and know-how to help you find affordable life insurance options. Get in touch, and we’ll help you find the right protection.