When people ask others what they do, many moms and dads answer that they’re a stay-at-home parent. If they were to be pressed further into what that job entails, they probably would respond with a running list – laundry, cooking, cleaning, scheduling appointments, chauffeuring, monitoring homework, nursing illness and injuries and many more tasks.
The trend of one parent staying home to take care of their own children has increased since the recession, according to the U.S. Census Bureau. In 2010, about 23 percent of married couples with children under the age of 15 had one spouse who stayed home.
But how many stay-at-home parents know what their salaries would be, if they were professionally compensated for their contribution each and every day? If you listed off several professions including nannies or day care centers, housekeeping services and meal service plans, this can add up to a large financial expense.
While figuring this out might feel like an ego boost if you stay home and raise the children, it also may help your family out in building a more secure financial future. For example, if you don’t bring in a salary, but handle the day-to-day responsibilities and chores while raising the children, who would perform those duties if you were no longer around? That is why you may want to consider purchasing life insurance.
Term life insurance typically can protect your loved ones in case something happens to you. Term life insurance is usually the less-expensive option for life insurance because it only covers a set amount of time, such as 10, 20, or 30 years. You choose the amount of time and the amount your policy is worth. Then, your beneficiary receives a lump-sum payment from your policy if you die before that term is over.
In the event of your death, some benefits for having life insurance include:
* Paying off funeral expenses and other debts.
* Providing financial security to cover the mortgage and unexpected daily expenses.
* Helping your children pay for college tuition and expenses.
Many term life insurance policies may let you convert your policy to a permanent life insurance policy without needing a new medical exam.
While your job title of “stay-at-home” parent typically doesn’t bring in a salary to contribute to household expenses, you may be surprised to learn how valuable your job really is. And that may be a good reason to financially protect your family in case you weren’t able to continue providing those services.
