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Should a stay-at-home parent have a life insurance policy

This article puts forth considerations for buying a life insurance policy for a stay-at-home parent and how the policy can help cover costs of household responsibilities and fund future expenses.
When you die, your paychecks stop. So if you have someone who depends on you for financial support, it's likely you could justify having a life insurance policy. But what about stay-at-home parent who doesn't bring home a paycheck? Should they also have a life insurance policy?

A stay-at-home parent's worth

When you consider all the duties a stay-at-home parent performs while you're at work (childcare, managing finances, cooking and cleaning), the costs associated with finding yourself in the position of having to hire outside help to takeover this role might surprise you. In fact, according to, the average salary of a stay-at-home parent in 2016 should be at least $143,102 according to their 2016 survey.1

What you need to know

Just because a stay-at-home parent isn't receiving a paycheck, doesn't mean that their household contributions aren't substantial. If you were to die unexpectedly, your surviving stay-at-home spouse would most likely be forced to hire outside help. A life insurance policy can not only help you cover the costs associated with household responsibilities, but to help fund future expenses as well. The following are just a few considerations for buying a life insurance policy for a stay-at-home parent, and how a life insurance policy can help.

The cost of childcare

In 28 states the average annual cost of having a child in daycare now exceeds in-state college tuition at a four-year public university.2  Even if you have older children, after school care can be over $1,000 per month, per child, depending on the level of services provided.3 Having a life insurance policy could help cover these costs without taking a big chunk out of the family budget or draining savings and retirement accounts.

Funding their college education

According to, the average cost of an in-state college education in 2015-2016 is $24,601, and for private colleges, $47,831.4 A life insurance policy insuring the life of a stay at home parent could even help with the growing costs of a quality education should your family experience such a loss. Moreover, your children could graduate with little or even no debt thanks to thoughtful parents who planned ahead.

Leaving an inheritance

You want to give your children so much in life. And being there to share it with them makes it all that much better. But when one parent dies, there remains a void. And while nothing can take your place, a life insurance policy can leave your children with a loving gift to help them with a down payment on their first home purchase or fund a dream wedding.






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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

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