Many times, experts recommend buying life insurance that covers your income for three to five years. If you were to die, the policy would give your loved ones a safety net. What if you don’t work? Stay-at-home moms may not think they need life insurance. It is very easy to make this big mistake. Why would this be a mistake not to cover a spouse that stays home?

How Much Is Your Work Worth?
Studies over the years tried to put a dollar amount of the value of a stay-at-home parent. How much is their work worth?
There is no way to truly calculate this since every situation is different. Estimates run from $20,000 up to $100,000 a year or more. Yet, no one is earning an income by staying at home with their kids. So, why would you lose anything if that parent isn’t there?
Imagine what might happen if a stay at home father died suddenly. The kids, perhaps under the age of 5, depend on the father. He’s not there to support them at this point. The other parent must now make adjustments in things like daycare and potentially a nanny to help support the growth of their children. That gets to be expensive.
Could you afford to provide someone to do half the job of your stay at home parent? Chances are good this would be financially draining. For that reason, it is very important for both parents to have financial coverage in case of sudden death. Recognize the importance of protecting your family in this way.
How to Estimate How Much You Need
Every situation is unique. Your life insurance agent can help offer some guidance on how to buy life insurance for a stay at home parent. These tips can help you.
- Consider the value of watching the kids alone first. To do this, call a few daycare centers. Request a quote for the cost to watch your children so you can work.
- Consider the value of taking care of the home. If your stay at home parent does the laundry, cleans, and cooks, that makes them even more valuable. You can calculate the value of having someone else do this as an example.
In many cases, both parents should have life insurance. With enough coverage, it is possible to minimize the financial burden on either side of the coin. Most importantly, estimating the true worth of a stay at home parent is important. Let your agent help you do so.