Life Insurance for Stay-At-Home Parents Affordable Life Insurance
Table of Content
- What Stay-At-Home Parent Duties Life Insurance Can Cover
- How Can I Trust You? You’re a Startup.
- Learn More About No Medical Exam Life Insurance Today!
- How To Determine The Right Amount Of Life Insurance Coverage For Stay-At-Home Parents
- What debt (good and bad) do you have?
- What Does It Cost To Replace A Mom?
- What Type of Life Insurance Should You Buy?
For example, a $500, year term life insurance policy costs on average $300 annually for a 30-year-old male. The annual price jumps to $936 for a 50-year-old male. We’re a life insurance broker that helps you cast a wider net. In minutes, you can see prices and compare policies from top-rated life insurance companies all at once. You’ll only be working with us and the life insurance company you choose.
Even if you don’t want to buy a $1 million plan, you should still have a plan to help ease the financial burden of losing a parent. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.
What Stay-At-Home Parent Duties Life Insurance Can Cover
For many of the families, I have worked with the decision usually revolves around how much debt they currently have and college expenses. So if you have $250,000 left on your mortgage and three kids, a life insurance policy of at least $500,000 is probably in order. Calculating the amount of term life insurance on a stay-at-home parent can be a little tricky with life insurance companies sometimes. Life insurance companies have rules on how much life insurance coverage an individual can own.
Plus, there could be lingering medical bills or other expenses that need to be covered. Guaranteed issue coverage is typically purchased by people who can’t qualify for any other type of life insurance. If you are approved for guaranteed life insurance, your policy will likely have a waiting period before your benefits go into effect, typically two or three years. You would pay your premiums during this time but if you were to pass away during the waiting period, your beneficiaries would not receive the death benefit. We also took into account paying off the home mortgage to free up that monthly cash flow that could go toward taking care of our kids.
How Can I Trust You? You’re a Startup.
The main downside to this type of policy is the much higher cost for the same coverage amount. There’s always a big debate about whether term or whole life insurance is best but the truth is it depends on your situation. Most people prefer term life insurance because it’s affordable and simple. I will typically suggest term as the best fit for stay at home moms to the majority of my clients. Life insurance riders add benefits to a life insurance policy, such as waiving premiums if you become disabled, but they make your policy more expensive.

After all, a family forced to survive without a primary wage earner’s income can be financially devastating. With a Life Insurance policy you can take care of your family the right way. According to the 2016 Mom Salary Survey from Salary.com. If you were to take everything a stay-at-home mom did and put a dollar amount to it, it would come out to a salary of over $48,000. The study also put an overtime figure of $94,000, which comes to a total of $143,000. Nevertheless, you can subtract existing life insurance when you calculate your life insurance needs.
Learn More About No Medical Exam Life Insurance Today!
The cost of raising a child isn’t cheap and your income is essential. Haven Life Plus, a rider to the Haven Term policy, provides policyholders with access to additional benefits and services at no extra cost. Based on your answers, you probably don’t need life insurance at this time.
In addition, a stay at home parent is providing a high degree of value from the childcare duties that they are performing. Because of this, it’s absolutely crucial that you have a life insurance plan in place. Having children can be one of life's greatest joys, but parenthood is not easy. A life insurance policy is one way that could help protect your growing family’s finances, and becoming a new parent is a great time to look into coverage. One benefit of a permanent life insurance policy is that it builds cash value. It’s money you can use later in life if the policy builds up enough cash value.
If your bank accounts are in your name only, then the account may have to go through probate to determine who gets access to it (likely your spouse if you’re married). It’s also important to look at the financial strength of the insurer when making your selection. You’ll want to make sure that your insurer is financially stable enough to pay out death benefits regardless of the current economic climate. You can check the company’s financial strength ratings with AM Best, a company that assesses the reliability of insurers and other financial institutions. Whole life insurance does not expire and gives you coverage for your “whole life”, or for as long as you keep paying for the premium. Whole life also offers a cash value component meaning that after years of paying into it you can accumulate monies that you might be able to borrow off of to use to your preference.

As a simple number, a general rule of thumb is to buy between $300,000 and $500,000 0f life insurance for a stay-at-home parent. Here is a life insurance calculator meant to help a nonworking parent decide how much coverage they may need. The laddering strategy is ideal if you have different financial obligations you want to cover but don’t want to pay expensive premiums for one large term life insurance policy. If you would like you and your spouse to be covered under the same policy, you may consider a survivorship life insurance policy. This is a policy that covers two individuals and functions similarly to a universal life insurance policy. However, it only pays the death benefit when the second person dies.
The death benefit can also be increased or decreased if needed. Perhaps you know you need life insurance, but you’re not quite sure how much. The death benefit from a life insurance policy can save a struggling family that loses a provider.

However, if John has any outstanding policy loans at death, this amount plus interest will be taken from the total death benefit amount. Some guaranteed universal life insurance policies offer policyowners the option to decrease the death benefit if needed. And some guaranteed universal life insurance policies offer a return of premium option. The specifications of these features vary depending on the policy. A universal life insurance policy is flexible and designed to meet the changes in a person’s life. It can be aggressively funded if the policyowner has the capability and during times of tightened budgets premium payments can be reduced or suspended altogether.
A little buffer on top of that would be suggested as well. There is a general rule of thumb for determining the necessary coverage amount by multiplying your income times 7 or 10 years. Most people would agree it’s important to get life insurance for any wage earner in a family. It’s likely that most couples haven’t thought through the potential repercussions of not covering the stay at home parent with life insurance.
Performance information may have changed since the time of publication. You should factor in any existing life insurance policies you have when gauging your life coverage needs. The benefit here is that the independent agent will be able to find you the best deal by researching multiple life insurance companies.
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