The vision you have for your family is important.
Most parents have a vision for how they want to raise their children and the lifestyle they want to provide. It’s important to keep this vision on track, even if a parent passes away.
That’s where life insurance for stay-at-home parents can help. According to a National Life Sales Representative at Amica, many families feel strongly about stay-at-home parenting. As a result, they purchase enough life insurance to allow a working parent to stay home with children if the other parent passes away.
Here’s the truth: There isn’t a one-size-fits-all recommendation for life insurance. Ultimately, the amount of life insurance you need depends on the lifestyle you want for your family. The National Life Sales Representative says, “Think about what kind of life you’d want for them if you weren’t around. Open yourself up to answering the hard questions, as uncomfortable as they are. Then your insurance representative can help you find the right coverage.”
It’s recommended that life insurance coverage equal at least seven to 10 times the employed parent’s income.2 This allows room to outsource household responsibilities, and gives the family time to grieve. Your insurance representative will also recommend coverage based on:
- How many children you have and their educational needs
- The ages of your children and the length of time before they’re financially independent
- Your total debt, including student loans, car loans, mortgages and credit card balances
Keep in mind, most stay-at-home parents qualify for as much insurance coverage as their working spouses or partners. Don’t underestimate your value. You may need more coverage than you think.