A stay-at-home parent's worthWhen you consider all the duties a stay-at-home parent performs (childcare, managing finances, cooking and cleaning), the costs associated with hiring outside help to takeover this role might surprise you. In fact, according to Salary.com, the average salary of a stay-at-home parent should be at least $178,201 according to their 2019 survey.1
What you need to knowJust 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 help you cover the costs associated with household responsibilities, and 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 childcareThe average cost of having a child in daycare, an estimated $1,230 per month, exceeds the cost of in-state college tuition in 28 states.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 educationAccording to Collegedata.com, the average cost of an in-state college education in 2020-2021 is $26,820, and for private colleges, $54,880.4 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 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 to fund a dream wedding.