As a stay-at-home mom, you may not be the family breadwinner, but the things you do for your loved ones daily are incredibly valuable. In fact, according to the 2020/2021 salary.com survey of 19,000 mothers, a stay-at-home mom’s salary value is equal to $184,000. Needless to say, all that you do every day would not be easy to replace. That’s why it’s so important to consider having a plan in place to help ensure your family could stay afloat. One option is life insurance. Here are some of the ways a life insurance policy can benefit your family:
Cost of living
The main benefit of a life insurance policy is to provide a death benefit to beneficiaries should you pass on. A life insurance policy can help to keep your family financially stable after you pass away. The death benefit proceeds from a life insurance policy can help to cover everyday expenses like mortgage or rent payments, utility bills, groceries, and more. Getting a payout from a life insurance policy could be a big help for your family to maintain their standard of living.
Should you pass away, death benefit proceeds from life insurance can be used to help pay off those debts or make them more manageable for your family. It can also be used to help pay for any of your outstanding debts.
One of the biggest expenses your family will have to shoulder without you is the long-term costs of child care. According to a 2021 Care.com survey, 72% of families say child care is more expensive and 46% of families say child care is more difficult to find, due to the pandemic. If you pass away, your kids will need someone to watch them while your partner is working. Your children may also need to be taken to school, the doctor, sports practice, and other places, so someone will need to drop them off and pick them up. Hiring a caretaker is a line item your family likely did not have in the budget. Death benefit proceeds from a life insurance policy can help to make sure your kids are looked after if you aren’t there.
If you pass away, maintaining a home by cleaning, shopping, and cooking is a big job. Some of these chores can be covered by your partner but chances are good that help will be needed. This can also be a big expense where death benefit proceeds from life insurance can help.
Should you pass away, your family may face a difficult adjustment period, emotionally and financially. Life insurance can help make that process a little easier by helping pay for such things as grief counseling. It can allow your partner to take time off.
Cost of final expenses
The price of a funeral can be very expensive. According to the National Funeral Directors Association, the median cost is $7,848. A life insurance policy can help your family pay for funeral arrangements and other related expenses required to lay you to rest. Not having to worry about money for your final expenses can help make things easier for your grieving family.
With a life insurance policy, you can not only set aside money for your children to help them carry on when you pass but also aid them in the future. Leaving your beneficiaries money can go a long way toward helping your loved ones pay for something like higher education down the road.
What types of life insurance are available?
The type and amount of life insurance needed as a stay-at-home parent depends on your personal situation. Some factors to consider may include:
- Home services for your partner. These might include outsourced services for housekeeping, grocery shopping, cooking, transportation, etc.
- Cost of full or part-time child care in your area if needed.
- Types of life insurance available, how much they cost, and your budget constraints. Some options include:
- Term life insurance –Term life insurance is typically the least expensive. It provides death benefit protection for a specific period, typically 10, 20, or 30 years as long as the premiums are paid.
- Permanent life insurance – Permanent life insurance offers lifetime coverage and some offer the potential to build cash value, as long as premiums are paid.
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