Does A Stay-At-Home Parent Need Life Insurance?


Consider this: If a stay at home parent was not at home taking care of children, cooking meals, cleaning the house, who would? Often, the alternative is to hire someone to do those things, like a nanny/au pair, prepared meal service, or cleaning person. Any parent that has used a day care or nanny will tell you that these are not small expenses, especially for a newborn or a child of special needs.

Back to the original question – if the parent is providing economic value to the home, even if they are not bringing in a monetary income, they still have a need for life insurance just as much as a parent earning a salary. If a homemaker were to pass away, the surviving parent would have a difficult time working a full-time job to maintain the household finances AND taking care of children, keeping a home, etc.

Multiple studies show the “economic value” of a stay at home parent anywhere from $30,000/year to over $100,000/year (factoring in overtime pay). While I think the $100K/year figure is rather inflated, a household with more than one child could easily have daycare expenses exceeding $18,000/year. Adding this up could mean $100,000 or more over time.

If you are not sure about your family’s need for life insurance, please contact Tom Manno at 630.242.3332 or today. Life insurance is a very important piece of the financial planning puzzle and is the foundation of any financial plan.