We understand that parents who work outside the house most likely need life insurance to protect their loved ones. But what about all of our stay-at-home parents? In the case of an unfortunate event, it’s not just the breadwinners who need coverage – but those of you staying at home. Here are nine reasons stay-at-home parents should also consider life insurance.
1. YOUR LABOR IS ESSENTIAL
Just because you’re not receiving an employee paycheck doesn’t mean you don’t contribute to your household income. If something happens to you, your spouse is probably going to need some outside help to cover your absence. In 2014, Salary.com reported that stay-at-home-parents contribute the equivalent of a $162,581 annual salary to their households.
Still, think you’re a stay-at-home parent with no cash value?
If an unfortunate event were to fall upon you, your surviving partner would then have to take on new expenses that you previously shouldered. Getting life insurance is typically quick and affordable. It allows you to get coverage for a specific amount of time, such as 10 or 20 years—usually, until you pay off your mortgage or the kids are out of the house.
2. THINK ABOUT FUTURE INCOME
It’s always best to plan for the future – especially as a stay-at-home parent. Once the kiddos are older, and out of the house, you’re going to return to the workforce. Life insurance is a financial option that could help bridge the gap that your future earnings could have contributed to the household income.
3. PAY OFF YOUR DEBT
If you’re fresh out of college and fortunate enough to be debt-free, you don’t need it quite yet. But if you’re married and kids are on the horizon, it’s good to start looking for policies now. Whether you have student loan debt or credit card debt, life insurance can help you settle any debts, so they don’t create additional stress for your family.
4. RELIEVE FAMILY OF FUNERAL EXPENSES
An unfortunate reality – your family, will have to pay for funeral services at some point. Also, they’re not cheap. Would you believe that the average funeral service in America is $7,360 for a funeral and burial and $6,260 on average for a full cremation service?
Fortunately, the payout from a substantial life insurance policy can relieve your grieving love ones of the costs.
5. PAY FOR YOUR KIDS’ EDUCATION
The College Board’s cost calculator estimates a student entering a four-year college in 2021 will pay an average of $25,265 per year for his/her education. That number jumps up to $29,495 for a student entering the same college in 2025.
Your selected life insurance policy may not cover all of the costs of a child’s education. However, it can provide a soft cushion for your child to get an education without accumulating too much debt.
6. BUILD YOUR SAVINGS
Permanent life insurance is a great option that offers lifelong protection. It provides additional living benefits – like the ability to build your cash value. Depending on your policy, it can be used for any purpose you wish – from paying for college to making a down payment on a house.
It should be noted that withdrawing or borrowing funds will ultimately reduce your policy’s cash value and death benefit if you don’t pay your balance.
7. TAX-LESS INCOME
Most large sums of money are subject to tax. Fortunately, life insurance offers the unique benefit of leaving loved one’s money that is generally income tax-free.
8. PEACE OF MIND
Nothing is harder than losing a parent or partner before their time. It’s difficult enough without having to think about funeral bills, unsettled debts, and other expenses.
Even as a stay-at-home parent, getting a life insurance policy will put everyone at ease. Knowing your family is taken care of is the main objective.
Stander & Company is There for You
It’s vital (now more than ever) to have yourself an excellent insurance company behind you and your family. They can advise you on financial decisions and help you make sure your entire household is taken care of.
If you’d like to get started with choosing the right life insurance for you, check out the rest of Stander & Company’s site. Along with our insurance services, we provide bookkeeping, payroll, and business consulting services. Contact us today to start protecting your family in a smart way.