5 Great Reasons Stay-At-Home Parents Need Life Insurance

Many people believe that working parents would most likely need life insurance coverage to protect their loved ones in case something bad happens outside. A part of it is true, given they’re the ones who bring home the salary on a daily basis. However, there’s also a part where a misconception takes place. It’s not just the breadwinners who need coverage in the family because stay-at-home parents might somehow need it, too. 

                   

Being a working mom or dad at home is probably the most difficult job in the world. You might be asking “How come?”. When it comes to household chores and babysitting, there’s no such thing as nine-to-five shift because as long as there’s an unfinished chore or a cry baby, stay-at-home moms or dads would likely be working even from dusk till dawn with no salary in return. Now, have you stopped for a while just to imagine how much could a houseparent earn if they were paid for doing all these chores? 

According to Salary.com, if we try to put a price tag on a priceless job, it would equate to more than $160,000 annual salary including the much-deserved over-time and night differential costs that go with it, which is why stay-at-home parents should never be taken for granted at all. Because, honestly, how can family members ensure that they are protected if that person was no longer around? In this article, you will find out some great reasons why stay-at-home parents need life insurance.  

Debt Payment 

It’s not just the working parents who take out a loan for some unforeseen reasons, houseparents might also owe — from student loans to credit cards and some informal debts from family members or friends. Securing houseparents’ lives with life insurance coverage can greatly help the mourning family to settle the unpaid bills that are left behind. 

Funeral Expenses Coverage

To live is costly but so is to die. Would you believe that a funeral can cost around $7,000 or more, excluding the burial, headstone, and other related expenses? As much as family members want to honor their late parents with a grand funeral, looking for sufficient funds to cover it can be quite challenging. But with life insurance coverage, the family members can possibly cover final wishes by its payout.   

Preparation for Any Future Income 

Some stay-at-home parents would often come back to the workforce when infants turn into grownups and no longer need enough supervision. In this scenario, the purpose of a life insurance policy is to fulfill the income gap that their future income would have contributed to the family.  

Cash Value Benefit

If houseparents try to avail a permanent life insurance policy, they are not only equipped with life-long protection but they can also accumulate a cash value that they can use in the future for a mortgage downpayment or children’s tuition fee in college. However, this privilege may reduce the amount of future debt benefit if not repaid on time.  

Insurability and Peace of Mind

Just the thought of leaving your family behind is quite heavy. We know. But remember that preparing for unexpected scenarios doesn’t mean it will happen any sooner. Obviously, the major role of life insurance is to give the person peace of mind, knowing that they will be leaving their loved ones with ample funds to cover their unsettled bills when their time has come in the future.  

Author Bio 

Sarah is a finance blogger, a household chef on weekends, and a fan of Queen’s music at the same time. She doesn't speak that much so she'd fairly express her philosophies through pages of blogs, literary compositions, and imaginative tales. When she’s not writing, she spends her precious little time thinking of what to write next.