Only the people who are earning for their family not only have the impact on their families. The work time of the earner is only 9 to 5 but for the homemaker, the duration extends beyond this.
Their importance is usually underestimated but they do have a very critical role. When comparing salaried people who fetch more earnings for the family the question arises why the stay-at-home parents need life insurance.
Importance of Life Insurance for stay-at-home parents
Life insurance is for everyone whether a homemaker or a salaried person. However, people do not emphasize life insurance equally. According to recent reports , 35% of working women have life insurance which is even more than working men among whom only 33% of men have life insurance coverage.
Whereas only a very small percentage of women not working have life insurance. As there are more get 160 million women in India who are homemakers it becomes important to emphasize life insurance for them.
Financial Protection for the Parents
We all know that stay-at-home parents do not bring home any paychecks at the month's end but still, they have a substantial role in the family's finances. If household work such as taking care of children, making meals, washing clothes, etc were not to be done by the stay-at-home parents then someone would be hired for these jobs.
These jobs might feel simple but can cost a lot. According to a survey made in 2019 , the median annual salary for a stay-at-home mom (SAHM) is $178,201, based on their daily workload.
Hereby, the contributions that the stay-at-home parents make as homemakers can not be understated. So, If we go to estimate their earnings then it would cost a lot.
How much coverage do the stay-at-home parents need?
The stay-at-home parent is the one who contributes to the family not by earning but by doing the household work and taking care of the family members.
Life insurance for stay-at-home parents is often neglected as people think if they are not earning their absence would not cause any financial burden. If we even remove the emotional aspect from this and then evaluate the household work that we neglect would cost up lot.
To figure out the amount of coverage that is required for life insurance can be determined by the annual earnings. But, in the case of stay-home-parents, there is no annual income associated with them so evaluating the coverage amount is a bit different. You have to ask yourself certain questions and then determine the amount of coverage the life insurance for parents. These will help you choose the best life insurance policy.
- How many children do you have?
It is simple proportionality in the family size and the life coverage requirement. The larger the family size higher the coverage amount that they will require. That is because the cost of child care would also be higher. Research childcare facilities, after-school care, or a full- or part-time babysitter in your area you will know how expensive is the cost of raising a child.
You will require a life insurance for parents providing enough coverage so that the cost of hiring a house cleaner, babysitter, lawn mower, etc could be covered until your children are not big enough to take care of themselves.
- Will the stay-at-home parent return to work?
This might happen that the stay-at-home parent might return to work if needed. In such scenarios the income of the family will increase and so will their expenses. You will want your family to get enough coverage when you return to work and start earning. It would be beneficial if you secure a good amount of coverage for low premium costs.
What are the reasons to buy life insurance for stay-at-home parents?
There is a critical role of stay-at-home parents in the family. No one is unaware of the benefits of life insurance for parents. Here are some reasons that you should consider while buying life insurance plans for parents.
To reduce the burden on the main earner of the family
The foremost benefit of life insurance for parents is that in case of any misfortune financial assistance to the main earner of the family. There are many services that a stay-at-home parent at home. In his absence, external help would be required to fulfill all those tasks. The cost of child care, mealing making, grocery management, and other expenses together would cost a huge amount. Hence, the coverage that the life insurance policy provides will help the main earner of the family. This will ensure no extra burden is built on him.
Ensuring Stability for Stay-at-Home Parents
When it comes to our family all the members of the family have equal roles in future planning and saving for it accordingly. The earning member of the family would undoubtedly contribute more to saving but the role of other members can not be undermined. Ensuring coverage for them makes sure that in the future because of some mishappening if they are not there the planning of the family would be on track. Life insurance for parents ensures that the children’s need for education does not get compromised in any event.
To ensure that the family does not get burdened by any debt upon your death
Any kind of loan whether it is a student loan, home loan, or mortgage loan nobody wants that if they fail to repay their debt their family feels the burden of that. Having life insurance ensures that even if in case you die your debts and loans are paid by your life insurance coverage and your family does not get burdened.
Life Insurance Benefits for Your Parents
People often have this concern that life insurance is expensive. Fitting the cost of premiums in our tight budget is very difficult. The monthly installments of the premiums might give you a bit of load in the start but it has benefits afterward. Whole life insurance for parents is recommended but if feels a bit costly to your pocket you can also go for the term life insurance plan. The term llife insurance for parents can be beneficial for those people who want security for their children for a certain time. For example, people having small kids can ensure that their children’s education does not suffer in case they die early. Term life insurance provides coverage only for a certain period such as 5,10,20,30 years. The whole life insurance for parents on the other hand provides the benefit of cash value that builds over time. The cash value can be beneficial as it can be withdrawn before the maturity time and it grows at a fixed rate.
Conclusion
The contributions of a stay-at-home parent go beyond only child care. There are several household works for which the working parent might not have time but the stay-at-parent can do it. The services that a stay-at-home parent can offer are housekeeping, laundry services, gardening, pet sitting, meal providing, tutoring, and driving.
Some best life insurance for parents over 60 are as follows:-
- IndiaFirst Life term plan
- Max life insurance for parents
- Tata AIA
