Do Stay-at-Home Parents Need Life Insurance?
Parent. Caregiver of children should be the official definition. Examples of synonyms include “nanny,” “tutor,” “launderer,” “chauffeur,” “coach,” “nurse,” “therapist,” “chef,” “hand-holder,” “tear-wiper,” “picker-upper,” “fight-breaker-upper,” and “bottom-pamperer.”
Although it’s a rich and rewarding role, parenting responsibilities never seem to end!
A stay-at-home parent is notably covered by this definition (SAHP). Although SAHPs may not earn six figures from a corner office, they still offer a wealth of beneficial services to the family.
Let’s discuss the need for life insurance for stay-at-home parents, the size of the policy, and what to do with the life insurance payout in the event of the unthinkable.
Understanding The Value of a Stay-at-Home Parent
Getting life insurance for parents who make a living is clear because the entire purpose of it is to replace your income so your family can carry on in the event of your passing.
What about protection for parents who stay at home, though? Given that stay-at-home parents are not considered to be wage earners, why even have term life insurance? (It is an exaggeration.) It’s as a result of the expensive services they offer!
The following are a few of the tasks a stay-at-home parent performs:
- Teacher
- Childcare provider
- Chef
- Chauffeur
- Housekeeper
- Laundry worker
- Tutor
- Coach
- Project manager
Operating a home is similar to trying to herd a litter of kittens; without a stay-at-home parent, things might quickly become ugly. Who would look after these needs if something terrible were to happen to the parent at home? The surviving spouse must continue to earn a living and cannot quit their job. Term life insurance can help in this situation.
Do Stay-at-Home Parents Need Life Insurance
A stay-at-home parent’s life insurance policy gives the funds required to pay for all the jobs the stay-at-home parent held before to their death, rather than replacing their income.
Of course, a parent cannot be replaced. That void in the family will never be filled by anything. But, the surviving spouse can hire someone to take over many of the duties the stay-at-home parent used to undertake using the money from a life insurance settlement.
Maintaining your family under the worst of circumstances is important. Although there will never be a return to normality, you can ensure that no one’s needs are overlooked by hiring someone to help fill in the gaps (at least temporarily). That’s the important part, right?
When Should You Get Life Insurance as a Stay-at-Home Parent
You don’t need life insurance just now if you’re a recent graduate and have no debt. But, if you’re married and want to have children, it’s a good idea to purchase life insurance right away.
Get life insurance as soon as possible to ensure that you are protected regardless of when the baby will arrive. After all, they frequently show up ahead of time and on their own schedule!
How Much Life Insurance Do Stay-at-Home Parents Need?
How much term life insurance should you buy for the parent who stays at home is the major question. Every family is unique, so there isn’t a universal solution to this, but as a general guideline, you should buy a 15- to 20-year coverage that is at least £250,000-400,000.
It’s acceptable to purchase more life insurance than you believe you require when you’re young because doing so isn’t that pricey. There is no need for coverage beyond those 15 or 20 years because all of the children should be grown and living on their own. Mummy Insurance can help you calculate exactly how much life insurance you need.
Coverage Considerations For Stay-at-Home Parents
Consider the following five key factors as you choose how much insurance to purchase: family size, future professional objectives, childcare needs, educational goals, and household responsibilities. The amount of life insurance you’ll need to provide for your family will depend on each of those factors.
How Many Children Do You Have
Larger families require more money to cover expenses like childcare, groceries, vacations, and all of the children’s extracurricular activities. So, having more children will necessitate a larger life insurance coverage for the stay-at-home parent.
Will The Stay-at-Home Parent Be Going Back To Work
In addition to what they offer at home, there’s also a chance they’ll go back to work.
Get them life insurance all the more so if that is a component of your stay-at-home parent plan. You should purchase a coverage that is 10–12 times their estimated income as soon as possible. Don’t wait till the stay-at-home parent starts working again to purchase their policy because the price of life insurance rises as you age. Right away, lock in a good low rate.
How Much Will Childcare Cost
Raising a child and supporting a family is getting more expensive. According to the CPAG, the cost of raising a child (excluding housing, childcare and council tax) from birth to 18 is now:
- £160,692 for a couple.
- £193,801 for a single parent/guardian.
Sadly, every 22 minutes a child in the UK will lose a parent that they depend on financially. What’s even more worrying is that a third of parents in the UK do not have any form of life insurance in place.
With the current rise of the cost of living within the U.K., more parents are starting to think about the future of their families and ensuring financial support is in place to protect their dependents.
Get The Right Life Insurance Policy
Parents who stay at home frequently downplay the financial contribution they make to their family. Avoid doing that, particularly when it comes to life insurance! Nobody will ever be able to replace you as the family’s stay-at-home nurse, chauffeur, coach, therapist, and bear hugger, but it’s crucial for them to have the money they’ll need to handle your most basic responsibilities.
Working with Mummy Insurance is advised. We will compare policies from the UK’s leading insurers and assist you in finding the best protection for your family. Get the best life insurance policy for both parents to guarantee that your needs are satisfied.
