You’re probably aware of the importance of carrying life Insurance if you’re the primary provider in your family. But what about a spouse that doesn’t earn an income and stays at home? Believe it or not, stay-at-home parents need life insurance as well!
Losing a stay-at-home parent would not only be devastating but it could place a financial burden on the entire family. So, in order to protect your family from a tragic loss, here are a few reasons why stay-at-home parents need life insurance:
Quick Article Guide:
- Substitute the Value of Your Labor
- Pay Off Debt
- Replace Future Income
- Cover Burial Expenses
- Leave a Legacy
- Protect Additional Income
- Tax Benefits
- Guarantee Insurability
- Increase Savings
- Give Peace of Mind
Substitute the value of your labor
Many stay-at-home parents take care of the kids, run the household, cook gourmet meals, clean, create science fair projects, and so much more. They bring more than a monetary contribution to their family. Their contributions are truly priceless. That’s why stay-at-home parents need life insurance.
You need to protect your family in case something were to happen to you. Think of the financial and emotional burden your family would suffer if you were no longer around. Your family would need to hire a nanny, a chef, a housekeeper, a tutor, and so much more, just to substitute your vital role.
Stop for a second and calculate how much it would cost to hire all of these professionals to fill your responsibilities.
According to Salary.com, the average salary for a stay-at-home mom would be $162,581. Life insurance can help supplement this sum of money to make sure your family is taken care of.
Pay off debt
From credit card balances to personal loans, debt comes in all shapes and sizes. If you have any debt, purchasing life insurance can help cover the costs. If you were to pass away, your debt would only add stress and turmoil to your family’s loss.
Life insurance can also help protect co-signers or joint account holders associated with your debt. For example, if you have a co-signer on your account, that individual may be responsible for the debt if you were to pass away. Life insurance can make sure these individuals aren’t held liable in case of your absence.
Replace future income
If staying at home is only a short-term solution for your family, an additional Insurance Policy could be beneficial. Many stay-at-home parents go back to work after a certain amount of time. If you plan to go back to work in the future, life insurance can help protect your future income.
Cover burial expenses
Did you know the average casket can cost anywhere from $2,000 to $10,000? Purchasing a casket is one of the many expenses associated with funeral and burial costs. Many families want to make sure their loved ones are honored appropriately when they pass on. However, honoring a loved one may come with a large price tag.
Life insurance can help cover these costs. Ideally, you will want to factor in all expenses your insurance policy would need to cover. This will ensure your family won’t have to foot the funeral bill.
Leave a lasting legacy
If you’re passionate about a specific cause, a life insurance policy can help you leave a lasting legacy to any institution or charity. Leaving a legacy behind is a great gift for any organization.
If you want to leave a monetary donation to your favorite organization or institution, you may need to purchase a life insurance policy.
Protect additional income
Some stay-at-home parents may also earn an income. Even if it’s just a small amount of money, it may still make a difference. Your family relies on this additional income to support your home and contribute to financial goals.
Life insurance can protect your income and make sure your family will continue to receive this amount in your absence.
Receive tax benefits
Did you know there are tax benefits associated with permanent life insurance? Over the years, Congress has included many various requirements for the tax code that gives life insurance some tax benefits. Some of these tax benefits include:
- Death benefits can be given to beneficiaries without requiring an income tax.
- Life insurance benefits that are paid out prior to the policyholder’s death due to chronic or terminal illness are tax-free.
- Whole and universal life insurance cash values can grow tax-free over time.
- A policyholder can exchange a life insurance policy for an annuity free of income tax.
Speak with a tax professional to understand how your life insurance policy can help you save money on taxes. For additional information visit IRS.gov.
Guarantee insurability
The younger and healthier you are, the less expensive your life insurance policy will be. As you age, your health can change; changes in your health could potentially cause a premium to go up. This is why you should purchase a life insurance policy as soon as possible.
Once you have a locked in rate, you don’t have to worry about changes to your health. Even if you are a stay-at-home spouse and don’t have any dependents, this may change in the future. So, purchase life insurance to protect your future family as soon as you can.
Increase savings
Some whole or universal life insurance policies carry an investment component. Your investment component or cash value is held in a separate account. You can borrow against your cash value or contribute to it to watch it grow.
However, each life insurance policy can vary. If you do borrow your cash value, it could impact your death benefit. For more information about the investment component of life insurance policies, check out this article.
Gives your family peace of mind
One of the biggest reasons stay-at-home parents need life insurance is the peace of mind it will give your family members. Grieving the loss of a loved one is hard enough, why add additional financial stress to the mix?
Purchasing a life insurance policy will allow your family to sleep well at night. You can rest assured knowing your family will be taken care of no matter what happens.
The bottom line
Stay-at-home parents need life insurance. If you’re a stay-at-home mom, dad, or spouse, you need to purchase a life insurance policy to protect your family. Your contributions are truly invaluable and need to be accounted for.
In order to identify the right policy and amount of coverage you need, please visit our comprehensive guide. Our team of experts will help you select the best policy for your insurance need.
At JRC Insurance Group, we have helped thousands of families and businesses with their life insurance needs, and we can help you too! Our agency is licensed in all 50 states and we’re independently owned and operated.
As a non-partial, no-fee brokerage, our goal is match our clients with the best life insurance options available by shopping and comparing rates from more than 45 highly-rated insurers. By having access to dozens of companies and their guidelines, we’re able to save our client’s time and money.
Most importantly, our services as completely free, and there is no cost to apply for coverage. Give us a call toll-free today at 855-247-9555, or you can request a free quote online to compare rates and options from dozens of insurance companies in less than a minute.
This post first appeared on JRC Insurance Group: Term Life Insurance Quotes, please read the originial post: here
