There is a misconception that the only person who needs life insurance is the primary breadwinner of the family.Stay-at-home parents need insurance too
There is a misconception that the only person who needs life insurance is the primary breadwinner of the family. After all, they are the ones who bring their paychecks home every day, right?
This could not be further from the truth.
Have you ever wondered how much you’ll pay for the services a stay-at-home mom or dad provides?It is claimed that if your family had to outsource all the work (and pay the overtime pay that comes with it), the national median earnings for all the work done by stay-at-home parents would be nearly $185,000 Calculations for Salary.com.
But being reminded not to take stay-at-home parenting for granted is only part of the equation. The other, arguably more important part: how to make sure your family is financially protected if that person isn’t around. Read on to learn why life insurance for stay-at-home parents makes sense.
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Financial contribution of stay-at-home parents
The cost of child care in the United States is staggering. While stay-at-home parents do more than just babysit, the financial impact is easiest to understand in terms of expenses.
According to a 2019 report, the average annual cost of center-based baby care in the United States is $11,959 Parenting awareness Report.The amount represents more than 12% of the median household income for married couples — far higher than HHS recommendations for child care costs not more than seven percent family income.
There are a lot of numbers and percentages to consider when calculating the financial contribution of a stay-at-home mom or stay-at-home dad (we only talked about child care).Thankfully, sites like Salary.com have Created a calculator This is where you can enter the number of hours spent on housework, childcare, home maintenance, cooking, driving, and many other tasks to find a comparable annual salary for your time spent working from home. Even consider overtime pay.
Why a stay-at-home spouse might need life insurance
The purpose of life insurance is to protect your loved ones financially. It is a major financial loss for any family if a stay-at-home parent dies.
Life insurance payouts can be a safety net that helps your survivors bear the financial burden of your death. The benefit itself (called a death benefit) is the amount the life insurance company will pay your beneficiaries if you die while the policy is in effect. Your beneficiary can use the policy’s death benefit to meet a variety of financial needs – help with funeral expenses, daily living expenses, or planning for the future, among others.
Term life insurance is an excellent option for financially protecting your family because the coverage is usually very affordable. For example, a 20-year, $500,000 Haven Term policy for a 35-year-old woman in good health starts at $17.50 per month.
Choosing the right amount of coverage for stay-at-home parents
At Haven Life, stay-at-home parents are eligible to purchase coverage up to or equal to the amount of coverage a working spouse would receive from any life insurance company.
Why? Generally, life insurance companies are required to limit anyone’s coverage to a level that makes sense for their financial situation. In the case of left-behind spouses, it is not easy to quantify their contribution to the household, but it is fair to assume that both contribute equally to the household.
For example, if you are a stay-at-home parent and your partner has a 30-year, $500,000 policy, you are eligible for coverage up to that amount through a Haven Term policy. The important point is that both parties need to have insurance.
So, here’s what you can expect.
Buy life insurance if you’re a stay-at-home spouse
Buying life insurance for your spouse or partner is now easier than ever thanks to a transparent, no-nonsense online life insurance process like Haven Life.
We’ve created a dynamic online experience that only asks you the questions really necessary to determine your eligibility for term life insurance coverage.
During the online application process, we ask about your lifestyle, personal health history, family health history, and fact-check with third-party providers like the Bureau of Health Information, DMV, and Social Security to make sure everything is accurate. That’s no more information than other insurance companies ask for; we just analyze it in real time, not over weeks.
With this policy, make sure the salaried spouse is covered first (by any life insurance company) so you can get equal or less coverage. Then apply for an amount of coverage equal to or equal to the working partner’s income. Honestly, set your income to zero and your occupation to be a stay at home parent.
This real-time application processing is how we are able to make an immediate decision on coverage eligibility. This is a true anywhere/any device life insurance process. If the underwriters have questions about your application, they will ask you via email in a structured format that you can easily access on your smartphone.
The only part of the buying process that may not be online is the physical exam.
Some eligible, healthy Haven Term applicants under the age of 45 may be eligible to skip the medical exam entirely, however, in most cases, a medical exam is required to finalize coverage.
Once you submit your online life insurance application, we will know if a medical exam is required to verify that your health is as reported in the answers provided. Note: It is very important to be honest when filling out the application form. Issuance of the policy or payment of its benefits depends on the applicant’s insurability, based on their answers to the health questions on the application and their authenticity.
If a medical exam is required, you will have 90 days to take it and will generally be covered during that time. Once we have the results of the medical examination, we will send you a final quote with the true price for your approval.
If no medical examination is required, you will receive a final offer after submitting your application and once you electronically sign, you are done. There are no phone interviews. No fax. nothing.
you are done. Praise yourself for helping protect your loved one’s financial situation.
Enjoy with peace of mind
The thought of being away from your family is unfathomable. we know. However, preparing for the unexpected does not make it happen sooner.
For stay-at-home moms or dads, term life insurance can be a critical part of the sometimes difficult preparation plan. It is a selfless service (on top of all the other selfless services they already provide) that not only provides protection but peace of mind for their loved ones.