When you are thinking of life insurance to secure the financial well-being of your family, don’t forget the economical value to a stay-at-home caregiver. His or her financial impact would be felt the same way as losing the family breadwinner, working outside the home.
Many discussions about the fiscal equivalence of a stay-at-home caregiver easily reaches into the six-figure range. Google is full of stories about the undocumented salary a stay-at-home caregiver generates over the course of his or her years in this line of work.
So it is only elemental that a stay-at-home caregiver carry his or her own life insurance policy for a family. Having this coverage would allow your loved ones to transition into their new lives, without at least the financial stresses they may have faced if you didn’t have the coverage.
“Stay-at-home moms have the need for life insurance because there are economic losses in the event of their death, in addition to the great emotional loss,” said Brian Ashe, treasurer of the LIFE Foundation, a nonprofit focused on educating the public about life insurance.
Just because stay-at-home caregivers are not receiving a paycheck does not mean they are not a commodity. Daycare costs alone can drive this point home on its own. Working spouses should carry life insurance, but also should the stay-at-home caregiver.
Life insurance experts agree that to cover a stay-at-home caregiver, people should estimate childcare and living expenses as well as the size of your family. A policy around 250,000-500,000 dollars is not unreasonable. The surviving spouse will be left to handle this all on their own.
LifeQuotes recommends term life as a good option because a person can obtain a higher coverage amount at smaller premium prices. This is because this coverage is designed to be temporary for the term length of the policy and a term life policy’s death benefit may or not be collected upon. For this very reason, insurers can qualify offering these products at lower costs to consumers, since the risk to the insurer is less.
Life insurance is best obtained when you are young and in optimum health. You are never obligated to carry a term life insurance policy to its full term length. Therefore, you are always free to rethink your life insurance needs at will and at any time with no penalty.