Most people would ask if stay-at-home parents or partners need life insurance, and the answer is yes. Here are some of the grounds why a stay-at-home parent needs life insurance:
- Educational benefits – the cost of living grows exponentially every year, and sending kids to school is not a stranger to it. It costs around $16,600 to send your kid to school, and this amount doesn’t include their college tuition fee.
- Child care – raising a kid costs a lot of money, which means you need a backup plan if something happens to you. In its 2015 Expenditures on Children by Families report, USDA said that a family spends $12,980 per child annually.
How Much Life Insurance?
There is no general rule on how much life insurance you need to get. As a basis, you can get a $250,000 to $400,000 policy for 15 to 20 years. Others multiply the year or the policy’s duration by 50% to 80% of the working parent’s annual income. To add to the decision-making, here are other considerations:
- The number of children – you need a higher or bigger life insurance policy if you have a big family.
- Are you going back to work? – getting back to work means additional household expenses.
Types of Life insurance
- Whole life insurance – also called permanent or universal life insurance, this kind of insurance encompasses your entire life. In turn, you are covered until you die. It builds cash value, which you can use in the future. However, this clause makes it more expensive.
- Term life insurance – unlike whole life insurance, this one only covers you over a period of time. The policy’s usual duration is 10, 15, 20, or 30 years, making it affordable.
Most couples generally conclude that only the working individual should get life insurance. However, that’s not the best course. Getting life insurance as a stay-at-home parent is highly advantageous to the family and for the individual. They do excellent and significant work at home, so they should get life insurance equal to their work.
At Cornerstone Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (770) 413-0807 or Click Here to request a free quote.