Why stay-at-home parents need life insurance

Life insurance is designed to protect against a loss of income if a loved one should die However this safeguard isn t just for traditionally employed adults The value stay-at-home parents provide should also be part of calculating how much life insurance a family requirements Related Articles Fed s favored inflation gauge accelerates slightly in August Trump to put import taxes on pharmaceutical drugs kitchen cabinets furniture and heavy trucks Microsoft reduces Israel s access to cloud and AI products over reports of mass surveillance in Gaza Apple says EU s sweeping digital rules delay new features for Europeans and seeks their repeal Instagram s deliberate design choices make it unsafe for teens despite Meta promises analysis finds In America of parents don t work for pay according to a Pew Research Center analysis of the preponderance contemporary U S Census Bureau material But that doesn t mean they re not adding to the household balance sheet In fact the U S Bureau of Labor Statistics BLS suggests the work of stay-at-home parents could be the financial equivalent of an administrative services and facilities manager plus a instructor all rolled into one Not just for wage earners For numerous years life insurance focused on replacing the income of breadwinners says Chris Mouzon an independent insurance agent based in Pennsylvania and co-founder of financial services firm United Agency But increasingly the invaluable help a stay-at-home parent provides is becoming part of life insurance conversations They bring an economic value to the household Mouzon says If a stay-at-home parent dies you re going to need a financial bump to just make sure household things your children and your lifestyle still get taken care of It can be uncomfortable to put a dollar value on anyone s life but it s also an major conversation families should have to make certain there s enough money after a loss Ensuring life insurance takes into account what a stay-at-home parent provides can protect your family s financial future Considering the value stay-at-home parents provide Assessing the financial effects of losing a stay-at-home parent can be tricky says Angela Moore an Orlando-based certified financial planner and a financial guide at Fruitful If you are a stay-at-home parent or primary caregiver and something happens to you that would cause a ripple effect over a multitude of years While much of what a parent provides is hard to quantify preponderance household responsibilities have a price tag And depending on where you live it can be a steep one Let s break down what your family might need help with and how much it would cost if a stay-at-home parent is no longer there picking up the slack Caretaking Multiple stay-at-home parents provide care for members of the family specifically children And while it is a labor of love it can be a demanding and expensive job U S Department of Labor records shows families spend from to per year for full-time child care for just one child Household management Stay-at-home parents wear a lot of hats and running a household is often one of them Here are a limited tasks that could fall by the wayside without an extra hand to help Cleaning Wiping down surfaces and picking up the toys might be all in a day s work for a stay-at-home parent but don t underestimate how much time these chores occupy and what it might cost to hire help The rate for housekeeping services hovers around per hour according to the majority of new BLS estimate Laundry Keeping a steady supply of clean clothes is a challenge but outsourcing that labor also comes at a cost For instance weekly wash-and-fold facility in New York City costs about per pound with larger items like bedding demanding additional fees Cooking Food preparation for a family is serious business The average American household already spends per year on eating outside the home according to BLS material but that bill could hastily balloon without someone to help put dinner on the table Shopping Although largest part families can get preponderance goods or groceries delivered shopping is still a mundane but necessary task Without someone to run those errands you might need to hire a personal shopper or rack up extra fees for delivery services Managing finances and more This is by no means an exhaustive list of the a large number of household responsibilities parents juggle Your family might have a stay-at-home parent who also takes charge of yard work home repairs pet care or balancing the household budget Make sure to factor that work into your calculation Deciding how much coverage your family requirements When trying to decide how much life insurance stay-at-home parents should have you should also consider including these additional costs Funeral expenses The median cost of a funeral with a viewing and burial tops according to the National Funeral Directors Association Training costs Decide what you d need to cover educational expenses like college or private school tuition Temporary income replacement After the death of a stay-at-home parent time off from work to grieve and to set up alternative arrangements for care is essential Debt payoff Include any credit card debt or loans the stay-at-home parent holds that might need to be repaid Additional financial help for children Think about how you might like to aid children financially not just in childhood but also early adulthood If calculating these expenses feels overwhelming Moore says family life insurance policies usually end up in the same ballpark After I ask these questions I add it all up and it usually falls somewhere between million to million for greater part regular young families Life insurance options for stay-at-home parents Securing life insurance for a stay-at-home parent doesn t have to be expensive or complicated In fact for most of families term life insurance the largest part affordable type of life insurance will be sufficient This is especially true if you re young and healthy For example a healthy -year-old non-smoker might pay a month on average for a -year term life protocol according to life insurance brokerage Policygenius Mouzon advises stay-at-home parents to consider an individual term protocol of to years with living benefits a strategy feature that lets you access your death benefit early if you re diagnosed with a serious illness That living benefit will take care of the sickness side and in the event someone gets cancer stroke a heart attack or particular type of chronic or critical illness this plan will pay out If you have a relatively young family getting coverage sooner rather than later may also save money in the long run because young healthy people qualify for the lowest life insurance rates You re the youngest and healthiest you re gonna be Mouzon says So you might as well just pay attention to it now while it s the cheapest More From NerdWallet Different Types of Life Insurance Life Insurance How to Find the Right Approach for You What Is Term Life Insurance Kaz Weida writes for NerdWallet Email kweida nerdwallet com The article Why Stay-at-Home Parents Need Life Insurance originally appeared on NerdWallet