You might think life insurance is only important for a family’s breadwinner. However, parents who stay at home to care for their families provide significant financial value. When planning for your family’s future, consider life insurance for members who don’t work outside of the home, as well as for those who do.
Plan for the costs of childcare
Childcare expenses can be overwhelming, with costs soaring up to $36,0001 per year per child. Whether it’s daycare, after-school programs, or hiring a nanny, these expenses can quickly accumulate.
By securing a life insurance policy, you recognize the contributions of the stay-at-home parent and help ensure that if something unexpected were to happen, your family’s needs will be taken care of.
Cover the financial value of household contributions
A stay-at-home parent’s responsibilities extend beyond childcare. Consider how they manage household finances, meal prep, and housekeeping tasks, and you’ll understand why their contributions are invaluable.
In fact, when quantifying the various roles they fulfill, the annual value of these responsibilities can amount to an astonishing $133,440.2 Protecting the financial value of these contributions is just as crucial as safeguarding a working spouse’s income.
The value of life insurance for a stay-at-home parent
When considering the type of life insurance coverage you need, Fixed Indexed Universal Life (FIUL) products are a strong financial tool that can serve multiple purposes, just like the stay-at-home parent. FIUL products provide coverage in the case of an unexpected death, but also may include other benefits, such as living benefits, or coverage for things such as critical, chronic or terminal illness.
These benefits can help cover the costs that stack up if a stay-at-home parent becomes ill. They also can offer opportunities for retirement savings outside an employer plan, with cash accumulation in an FIUL policy supplementing traditional retirement savings.
Talk with a financial and insurance professional to see how life insurance could help you and your family.