Just because you’re not earning a paycheque doesn’t mean a life insurance policy is not in place. You may think that since you’re not bringing home the bacon, there’s not much impact if your family lost you.
Aside from the emotional shock your death brings your family, it could also be financially devastating. So, before you say you’re “just” a stay-at-home parent without any financial contribution to your household, here are some things to consider why you’re more than worthy of a life insurance policy.
1. Stay-At-Home Parents Add Value
The typical thinking around life insurance is that you need it to replace the income that would be lost in the event of death. While this is true, there’s an easier way to think about whether you need life insurance. If your death will bring ongoing financial hardship or loss to your family, then you definitely need life insurance. Because when you’re gone, someone else would have to do what you do when you were alive, like childcare, housework, errands, etc. Your spouse or any guardian would either have to give up income to do your job or shell out money to hire someone else to do it.
2. A Life Insurance Policy Can Pay For Education
If you’re homeschooling your children, you and your partner need to decide who’ll educate your children if the inevitable happens. Consider the cost of private schooling or a private teacher for your insurance needs if you choose to keep your children out of public schools. Life insurance can also pay for your children’s college education, even if it may not cover all of the costs, it can be a soft cushion for your child to get an education without accruing a lot of debt.
3. You Can Leave Your Kids An Inheritance
As parents, you want to give your children whatever you can. Leaving your kids a portion of your inheritance can give them a head start when they’re grown. Though it’s nothing compared to having you there, it’s one way to help your family out even if you’re not around. It doesn’t have to be millions of dollars, leaving a small nest egg behind will be more than enough.
4. Your Family Won’t Be Saddled With A Funeral Bill
The constantly increasing cost-of-dying adds misery to the already disheartened bereaved family. A life insurance policy can alleviate your end of life expenses so your family won’t have to deal with it on top of their grief. Though money can never take your place, knowing your family will be taken care of if you’re unable to can give you peace of mind.
5. Life Insurance Is Back-Up For Kids
If ever something were to happen to you (if you’re a single parent) or both of you (if you’re part of a two-parent family), the people you’ve designated in your will to be your children’s guardians will have life insurance money to spend on taking care of your kids.