Life insurance is an essential part of the financial protection for any family, especially those with stay-at-home parents. When a stay-at-home parent passes away, the financial losses can be devastating for the surviving family members. The loss of income and the extra childcare costs can be crippling, and without the right life insurance policy in place, the surviving family members may not be able to afford the funeral costs or maintain their financial security.
Even if you’re a stay-at-home parent, life insurance is a must-have. Here’s why.
1. Stay-at-home Parents Provide Financial Value
Many stay-at-home parents are likely underestimating their financial value to their family. The cost of childcare and housekeeping services can add up quickly. According to an article by Forbes, the average cost of full-time childcare for an infant is around $1,230 per month, while the cost of a nanny can be upwards of $2,450 per month. Furthermore, the value of a stay-at-home parent is often not accounted for in the family budget, but this value can be considerable. From driving kids to activities to helping with homework and preparing meals, stay-at-home parents provide invaluable services that would otherwise be very expensive if they had to be outsourced.
In the event of a stay-at-home parent’s death, life insurance can help replace the lost financial value. With the right policy in place, the surviving family can use the life insurance benefit to pay for the additional childcare and housekeeping services they need.
2. Life Insurance Can Help Pay for Funeral Costs
Funeral costs can be expensive, and the last thing a grieving family needs is the added financial stress of paying for the funeral services. Funeral costs vary, but the average cost of a funeral in the United States is around $7,000. This cost can be even higher in certain areas.
With life insurance, the surviving family can use the death benefit to cover the cost of the funeral services. This can be a huge relief for the family, who can focus on the grieving process without having to worry about how to cover the funeral costs.
3. Life Insurance Can Help Replace Lost Income
The loss of a stay-at-home parent can also mean a significant loss of income for the family. Many families rely on the stay-at-home parent’s income to pay for basic living expenses, such as food, rent, and utilities. Without the stay-at-home parent’s income, the surviving family may struggle to make ends meet.
With life insurance, the family can use the death benefit to replace the lost income. This can help the family maintain their financial security during a difficult time.
4. Life Insurance Can Help Fund Education Expenses
In addition to the immediate financial needs of the surviving family members, life insurance can also help fund the education expenses of the children. College tuition costs can add up quickly, and if the stay-at-home parent passes away without life insurance, the family may struggle to cover the education costs.
With the right policy, the surviving family can use the death benefit to cover the children’s college tuition, books, and other education-related expenses. This can help ensure the children have the opportunity to pursue their educational goals.
5. Life Insurance Can Provide Financial Security for the Family
Ultimately, life insurance can help provide the surviving family with financial security. The death benefit can be used to help pay for the additional costs of being a single-parent family, such as childcare and housekeeping services, as well as the funeral costs, lost income, and education expenses. This financial security can help the family focus on grieving and rebuilding their lives without having to worry about their financial future.
In short, life insurance is an essential part of the financial protection for any family, and especially those with stay-at-home parents. Without the right life insurance policy in place, the surviving family may not be able to afford the funeral costs or maintain their financial security. With the right policy, however, the family can use the death benefit to cover the additional costs of being a single-parent family, as well as the funeral costs, lost income, and education expenses. This financial security can provide the surviving family with the peace of mind that they need in a difficult time.
We’re always here to help! If you’re shopping for coverage or have questions about your policy, give us a call; our team is ready to deliver personalized service and support.
Give the Corwin-Rey team a call today, at 360-414-8754.