Life insurance exists mainly to deliver much-needed financial resources to family members when a primary provider passes away. Though this concept may bring to mind the concept of a “breadwinner,” it is important to note that stay-at-home parents who do not receive a paycheck also provide essential services to the family, and as such, the contributions they make should be factored into a discussion about the need for life insurance.
Statistics suggest that more than 10 million mothers and 2 million fathers with kids under the age of 18 did not hold jobs outside of the home. As such, the subject of the life insurance needs of stay-at-home parents is one that deserves substantial attention.
Attaching Value to Parenting Tasks
Stop and think about the innumerable services a stay-at-home caregiver delivers on a daily basis. If that provider were to pass away, and someone from the outside world had to be hired to handle that work, the price tag would likely be significant, indeed. Parents should ask themselves what it might cost to hire babysitters, meal preparation services, transportation providers, educational tutors, and laundry service. The cost rapidly escalates once all of the things routinely done by stay-at-home parents are honestly itemized.
Child care costs vary wildly, depending on the region, but they represent a massive expense to just about everyone who must find external caregivers for their young kids, particularly when it was not an anticipated part of the budget.
For most families, it simply is not feasible to expect grandparents to shoulder the load of daily childcare if the need arises. Filling in when parents need the occasional night out is one thing, but providing all-day care week after week is quite another, and if a stay-at-home parent becomes suddenly unable to care for the family’s youngsters, the financial hit can be catastrophic.
Securing Coverage Early
Stay-at-home parents should also be considering life insurance because it is wise to lock coverage into place while they are young and in good health. As potential policyholders age, price quotes tend to rise, particularly if health conditions come into the picture. Certain illnesses preclude coverage eligibility altogether, so it makes good sense to purchase coverage now, while prices are likely to be at their most favorable level. Check Senior life insurance company reviews and pick the best coverage according to the needs. This can be a life saver as well as a budget saver.
If increased coverage is likely to be desired in the future, it pays to purchase a policy with a guaranteed insurability rider right from the start. This allows insured parties to buy added coverage without any required medical exams.
Broadly speaking, it is smart for both parents to have some life insurance coverage so that the remaining family members are able to maintain their lifestyle if one happens to die. The coverage amounts need not be equal at any given time, and they can be adjusted as future circumstances dictate
Obtaining the Right Coverage
Life insurance is a topic with which not everyone has a great deal of familiarity or knowledge, particularly those on the younger end of the spectrum. Stay-at-home parents of young children are often so consumed with the daily challenges that lifestyle presents that they give little consideration to strategic financial decisions of this type.
The fact is, however, that life insurance really does have an important role to play for this demographic group, and young moms and dads would do well to learn all they can about the subject and how it can protect their entire families in the event of unexpected tragedy or loss. Asking trusted family members and friends about their experiences with purchasing life insurance can be a great start, and there are also voluminous online resources that can help provide a strong understanding of what is needed.
When it comes to deciding exactly how much coverage to purchase and from whom, young parents can avail themselves of a term life insurance calculator. This type of tool can help policy shoppers evaluate their insurance needs, their budgetary parameters, and the coverage options on offer from a range of providers. For our UK audience online comparison website www.reassured.co.uk has created this 2024 comprehensive life insurance for moms guide where you can compare quotes free of charge.
By taking this important financial planning step, moms and dads can focus on the rewarding work of raising their kids, safe in the knowledge that they have already provided for those they love most if the unthinkable should ever happen. The peace of mind that it brings is truly priceless.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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