Life insurance often provides financial help for a family when a covered individual dies. Often, insurers recommend this coverage for wage-earners. These are individuals who work or otherwise provide financial support to the family. Does that mean a stay-at-home mom or dad should not buy life insurance? Making this mistake could be a big one.
What Financial Contributions Does a Non-Working Spouse Offer?
Imagine what might happen if a non-working spouse passes away unexpectedly. He or she is not bringing in an income. However, this person is providing a financial benefit to the family. If you had to put your children in daycare, for example, how much would this cost a week? What would it cost to hire someone to care for the home or manage other needs? It is a misconception that only working individuals need life insurance.
How Life Insurance Still Helps
One way life insurance helps in this situation is by providing near-immediate financial help. The policy may cover funeral expenses. It may help cover end-of-life planning needs. It can also help cover medical bills left behind. It becomes immediately available (usually within a few weeks). This can give the other spouse time to manage daily life and perhaps miss work to do so.
Take into consideration this example. A mom is caring for her young ones while the father works. According to Salary.com's 2016 Mom Salary Survey, the financial worth of the tasks such an individual provides is about $48,509 as a base salary and as much as $94,593 in overtime. They work 92 or more hours a week to provide this level of care. From a financial standpoint, that's quite valuable.
Aside from this, life insurance also provides financial support for other needs. It can help to cover credit card debt. It may pay off the mortgage. It can help fund the college education of the children. It is quite versatile.
Every stay-at-home parent needs life insurance. You do not have to be working to contribute to the family. Without it, the spouse left behind may be unable to maintain the same quality of life. The family might suffer financially. Most life insurance plans for young parents are affordable. They can provide peace of mind as well. Do not overlook the importance of insuring all members of the family for these reasons.
Need West Chester life insurance? Let Miller's Insurance Agency, Inc. help. Call us at (610) 269-4500 for more information.