One question we frequently ask at Commonwealth Insurance Center in Williamsburg, VA is, "Do stay-at-home parents need life insurance?" It’s a great question! Here, we provide the guidance you need to make an informed decision about life insurance for parents who stay home to care for or educate their children.
Why Get Life Insurance?
First, let’s explore why anyone purchases life insurance. Life insurance serves several important purposes:
- it helps cover funeral and burial expenses, so your family is burdened with these costs at the time of your passing
- it can be used to pay off existing debt to reduce the costs for those you leave behind
- it can replace your income for those who depend on it
- it provides a rare tax-free benefit to those you leave it for
Additionally, whole life insurance provides another vital purpose: it can be cashed out to fund major life events, supplement retirement income, or assist with emergency expenses.
Life Insurance for Stay-at-Home Parents
Now that we better understand the purposes of life insurance, we can explore these policies for stay-at-home parents. Stay-at-home parents typically don’t have income to replace, which crosses one benefit off of the list. However, full-time childcare may be needed if the parent providing care passes away, and life insurance can help cover those costs.
Additionally, the policy can cover funeral and burial expenses, pay off existing debt, provide a tax-free benefit to survivors, and, in the case of your whole life, provide cash while you’re still living. For these reasons, stay-at-home parents typically elect to purchase life insurance.
Call Commonwealth Insurance Center in Williamsburg, VA, today to learn more about protecting your family or to get started with a quote!