Do Stay-at-Home Parents need life insurance? How much then ?

Nowadays, insurance companies enhanced life policies with many options and benefits in order for everyone to be illegible for a life policy. Elderly people, persons with physical disabilities or the unemployed, all of them are entitled to purchase a life insurance policy.

For stay-at-home parents, a life policy is a very smart investment because it does not only cover the funeral and burial costs in case you die but it can be abstract stay at home parentused to provide a means of support in the event of accident or serious injury as well. Stay-at-home parents can contribute very much to the household activities that would cost your family very much if something unfortunate might happen to you in the near or distant future.

Financial experts are recommending that people should get 5-20 times their annual income in life insurance coverage, but what happens if there are people who do not have income because they are full-time stay-at-home parents?              Or if you have a part-time job and contributing with a few hundred dollars per year to family bank account and you still spend time at home with your kids?

According to a recent survey, the services of a stay-at-home mom in 2012 (sorry, dads, you weren’t part of the survey this time) would cost about $113,000 if you had to outsource those services.  Even if stay-at-home parents do not  have an income, their actual salary is not the main issue but the amount they would pay to replace their services. These services include cleaning, cooking or daily care services.

A part of your stay-at-home parent services are invaluable for your loved ones, therefore, you must avoid to have more life insurance that it is necessary. When you decide how much term life insurance coverage to purchase, you must have to do some thorough calculations and carefully analyze the situation.

One of the first step in the process of deciding how much insurance you need is to imagine how would life look life if a parent died.Which services would the surviving spouse need or want to outsource. Looking into the costs of full-time child care and housekeeping services is a very good idea. Furthermore, stay-at-home parents can save family money, i.e. saving hundreds off the monthly grocery bill by meal planning, couponing and cooking at home.

The second step is to research how much life insurance coverage would costs having in mind that term life insurance premium rates are usually low. If the family has just one-income and lives on a tiny budget, the person won’t be able to afford much coverage. If not you might be able to afford the luxury of more coverage. The idea  is to make sure you can pay for it, even if you get into a tight place financially. Not paying your premium rates can lead in a termination of coverage, which is not a place you want to find yourself.

Having the right type of life insurance policy for both parents in a family and protecting your children against the unfortunate gives you a peace of mind.  If one of you stays at home with the kids, figuring up life insurance can be more difficult for the reason that you cannot multiply your annual income. Instead you just need to carefully think the situation and figure out how much life insurance the stay-at-home parent needs in order to make sure that his or her family is well protected.

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