Why Parents Staying At Home Should Consider Life Insurance Even If They Have No Income

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Consumers are often told to buy life insurance to replace their income – but what about parents who stay at home and have no income?


Key points

  • Many financial experts advise buying life insurance to replace income.
  • Parents who stay at home usually do not have an income that needs to be replaced.
  • It may still be important to pay life insurance for parents who stay at home.

Life insurance is a very important purchase. For consumers who buy coverage, the general advice is to buy a policy with a large enough death benefit to replace 10 to 12 times their annual income.

This advice might make it seem at first glance that parents who stay at home do not need life insurance. After all, parents who do not work outside the home have an income of $ 0, so this would mean that their death benefits would be $ 0 if calculated based on a multiple of their income.

In reality, however, it is very important that those who stay at home with their children have life insurance, even if they have no outside income. That’s why.

Life insurance can help cover the costs incurred in moving a parent who stays at home

The ultimate goal of life insurance is to protect surviving loved ones from a serious decline in their standard of living when someone dies. This often means replacing the income that the deceased no longer provides so that the bills can continue to be paid without that salary coming.

But in the case of a parent who stays at home, they may not have been paid, but they provide many valuable services. Parents who stay at home provide care for their children, which can be extremely expensive. They also usually help the household in many other ways, from helping aging parents to cooking, so dinner out is not necessary to fulfill orders for a working spouse.

If a parent who stays at home dies, all these tasks will still have to be done. And in many cases, this means that the other parent will have to cut back on work and pay, or that professionals will have to be hired, or both. And this can be a huge drain on the budget of surviving family members.

Life insurance can be purchased to provide funds to cover the cost of these services or to allow the other parent to spend more time at home with the children during a difficult time of grief. It can also help cover funeral and final expenses for the deceased parent to ensure that these additional costs do not become another burden for the family dealing with the disaster.

Income matters, but it is not the only factor that determines whether life insurance is needed

Life insurance is undoubtedly important because it serves as a form of income replacement and can provide money that a deceased person would otherwise contribute to the household if no premature death had occurred.

But it is important to look beyond what a person earns when deciding whether to have life insurance. Anyone who has people who depend on them should have life insurance, as well as anyone who wants to make sure it does not burden surviving loved ones with covering funeral expenses.

Buying a policy can provide very affordable protection and can help ensure that those who are abandoned take care of themselves in the best possible way. This is worth doing for most people, even if they don’t make a lot of money.

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