Nine Important Reasons: Why Stay-at-Home Parents Need Life Insurance

Life Insurance is the major safety measure for people. Many working parents know the worth of life insurance. They care about their children and family. In order to protect them, they need life insurance. But the fact of life insurance is it is not essential for working parents only while it is equally important for stay at home parents. Yes, stay at home parents can protect their family through insurance. Stay at home parents should know the worth of life insurance. Every parent needs coverage if anything wrong happens to them. In this article, I have shed light on some important aspects of life insurance. Here are nine essential reasons for stay-at-home parents that they need life insurance.

Following are the important life insurance reasons for stay-at-home parents:

  1. It replaces the value of stay-at-home parents’ labor.

Usually, stay-at-home parents are housekeepers but they also do some part-time jobs like tutors and cooks. They also contribute to their household expenses. According to the report of the salary.com, they contribute the equivalent of a $162,581 annual salary to their households. If any misfortune will happen to you or your surviving partner then, life insurance is the best way to get a considerable amount of coverage.

You can overcome quickly on the hurdle you are facing. Because in any worst situation money is the most important thing you may need. And if you get coverage amount for your loss, this is the most wanted help you will get. So, for every parent whether he/she is working or stay-at-home parent, life insurance is important. Life insurance is for a specific period of time like for 10 to 20 years. Until the time of maturity, you have to pay aspecific amount of annual premium.

  • To contribute in any future income of stay-at-home parents.

Usually, mothers think they will return to the working world once their kids are grown up.Life insurance plays a vital role here it could fill up the gap that their future earnings would have contributed to the household expenses.

  • To pay off your debts.

Stay-at-home parents would also be under some informal loans like student loan or credit card loan. You never know what would happen next to you. Life insurance will cover, your all informal loans after you. And your children will be free of any debt in the future.

  • It also covers the funeral expenses.

Life insurance has a significant policy which covers your all funeral expenses. In today’s era, it is hard for a middle-class family to cover all the funeral expense. As the average funeral expense is between $8,000 to $10,000.The best part of the life insurance is it covers your funeral expenses and you may not need to worry anymore for your last moments.

  • It is helpful to fulfill your charity dream.

You may use the coverage amount for the charity purpose. If your partner had a dream of opening a holy place or any nonprofit organization. This dream may come true because of the life insurance coverage amount.

  • It helps in savings.

Permanent life insurance gives you prolongs protection. It may offer you some additional living benefits like to build cash value.This cash can be used in future for any purpose. You can use this amount for the down payment of the loan or build a home.

  • It covers your medical expenses.

There is no guarantee that you will be healthy all the time. Your health may get change at any stage of life. You need money to cover your medical expenses. Life insurance gives you the facility of covering the medical expenses.

  • The coverage amount is tax-free.

The amount your loved ones receives from the insurance is income tax-free. You do not have to pay income tax on the insurance amount you receive.

  • It gives peace and relaxation to your children.

When you lose your partner, it is hard to handle household expenses alone. But you may get peace and sigh of relief because of the life insurance. You can handle unsettled debts, childcare expense, utility bills, funeral expense, and many more expenses.

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4 Things Life Insurance Is Not in the Main Focus

Many people are confused about the term life insurance. It is not bizarre because I also was unaware of the importance of life insurance a decade ago. But, after writing a lot on the finance topics, I know the importance of life insurance. Many employers offer you, life insurance and you do not know the importance of life insurance at that time. But I assure you after reading this article, you will know all about the life insurance and its importance.

If you think insurance has an only concern with your health, car, funeral, and home expenses then you are wrong. It is more than to cover such above-mentioned expenses. In that manner, life insurance is a term to cover your unnoticeable expenses. To understand the life insurance, in a better way, here are few tips below:

  1. Life insurance through your employer is just not enough.

Many people generally, do not pay a keen interest on the term life insurance. They are told by employers about life insurance and they are ok with it. They do not explore life insurance and its policies on their own. You may get great benefits through your work policies but they are limited. Life insurance is not in the main focus of yours because it is the part of your perks and you do not explore it furthermore. The insurance you get on your office may get end at a specific time and it may not provide you all the benefits you deserve for. You may not know at the end what will be in your children’s hands. Mostly the working life insurance covers only debts and some utility bills. But you need life insurance that covers all the expenses like childcare, bills, funeral expense,debt coverage, education cost etc. For that purpose, you have to calculate your insurance on your own and you can get help online.

  • Life insurance is not a fancy item to buy.

Usually, people do not think of buying life insurance as they think it is a fancy item. And they cannot afford the luxury or fancy item. This is not true. The fact is middle-class families can also buy life insurance. According to a report,people thought that the cost of a 20-year person is $250,000. And life insurance policy for a healthy 30years old person was 3 times higher than it generally is. Many young people usually overestimate the cost of an insurance policy by afactor of 5. If you make a rough guess on the policy, your answer will be probably round about $11. And we usually spent more than this on the meal. So, life insurance is not much expensive to buy.

  • Life insurance is not only to cover your funeral expenses.

There is a misconception regarding life insurance policies. Usually, people think life insurance is just about to cover their funeral expenses but this is not true. It covers more than your funeral expenses. Although, funeral requires a lot of cash and it is good that your life insurance amount will cover all and your family will not suffer for your funeral expense. But, life insurance is good for you as it covers your utility bills, child care expense, mortgage payment, debt payment, education cost, funeral expenses, tax-free income, and savingsafter you.You left behind your loved ones with a lot of benefits. They would not get into any problem for the money after you if you have life insurance.

  • Life insurance is not only for healthy people.

If you are concerned about your health then buy life insurance. People who are healthy and young they buy life insurance at very low. And for unhealthy people, life insurance is a bit expensive. But after recovering your disease you can buy life insurance at a low cost. So, do not reluctant yourself from buying life insurance.