Many have a misconception life insurance is not needed for the parent who is not the breadwinner for the household. It is true that a parent who stays home contributing to the household caring for chores & children does not receive any compensation, they need to ask themselves,
“What is my overall value? What would it cost to replace what I do from home if I were to die?”
Here is why a stay at home parent needs a life insurance policy. The value of a mother, if compensated estimates around $60,000 annually. This is based on a compilation of labor details, from the Bureau of Labor Statistics, of what it would cost to pay someone else the entire year for the services the mother rendered. Things like childcare, cooking, cleaning services, health education, personal care aides, are all services that mother’s take on a regular basis while caring for the household. These figures work for a stay at home father also.
The point is…it is not only the breadwinner that provides an income to maintain the lifestyle of the family both contribute to the household and if either parent is lost, without the purchase of a life insurance plan, the percentage of keeping the lifestyle the same after the loss of one is slim. It is a much higher risk to be without, than to purchase the safety net of a life insurance policy for both parents.
There are thousands of life insurance companies, all of which want individuals to buy from them, when searching affordable life insurance quotes start with term insurance. Term insurance is an affordable option when both parents want to buy a policy. The premiums for each will vary due to life insurance companies weighing the risks of each individual in the case of death benefit payout.
Generally, life insurance companies will consider gender, age, tobacco use, and health status. Though insurance companies are looking at the risks for the possibility of a claim during the term; remember parents must consider the risk of what might happen with their children if one or both die prematurely. Life insurance provides peace of mind that they are financially cared for. For a quote on term life insurance, click here for more info.