- Stay-at-home parents do valuable work, and life insurance can help cover the cost of replacing that support.
- Coverage can help protect your family’s lifestyle, childcare plans and everyday finances.
- Families should think about childcare needs, future expenses, debt and housing costs when choosing coverage.
- Life insurance can also help with funeral costs and may be easier to get when you’re younger and healthier.
Life Insurance for Stay-at-Home Parents
You’re a stay-at-home parent. And that means you’re likely also a chef, tutor, nurse, coach, childcare provider and chauffeur.
Key Takeaways
Caring for your children can be a demanding and rewarding job, even though it doesn’t come with a traditional salary or paycheck. For that reason, many stay-at-home parents assume they don't need life insurance. At Amica, we think you do. Here are a few reasons why we recommend life insurance for stay-at-home parents.
Quick takeaway: A stay-at-home parent may not earn income, but the work they do every day can still be expensive to replace. Life insurance can help a family cover those costs if something unexpected happens.
Your work has monetary value
According to 2021 data from Salary.com, the average annual salary of a stay-at-home parent, based on the value of the tasks performed, is $184,820.¹ In addition, this salary takes into consideration that most parents are on the clock 24 hours a day — from children who rise early to midnight feedings.
You’re probably keenly aware of how much you do on a day-to-day basis. But do you realize the value of your work? Think about it this way. If you were to pass away, what would it cost to hire someone to do all of the work you do? For example, could your family pay for:
- Childcare
- Food preparation
- Yardwork
- Tutoring and homework help
- Cleaning
- Transportation and carpools
If you were to pass away without life insurance, your family might be left without the resources to care for your children in the same way.
The bottom line: Life insurance for stay-at-home parent households can help make it possible for your family to maintain the quality of life they’re accustomed to in the event that you pass away. It allows children to continue their normal activities, like sports leagues, swimming lessons and tutoring. It also gives parents the financial freedom to hire help, so they can spend more time caring for children.
Looking at the bigger picture? Learn how families estimate coverage so you can better think through income, debt and ongoing household costs.
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 moms, dads and other 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. What to consider:
| What to think about | Why it matters | What to review |
|---|---|---|
| Childcare and household support | Your family may need paid help if you’re no longer there to do this work | How much support would need to be replaced and for how long |
| Children’s ages and future plans | Younger children may need support for more years | Education goals, activities and time until financial independence |
| Debt and housing costs | A surviving parent may still need to cover the mortgage and other bills | Mortgage balance, loan terms and monthly household obligations |
Comparing options? It’s good to know the difference between term and whole life insurance, and to understand the ins and outs of rates.
End-of-life costs can be expensive
Hardly anyone likes talking about funerals, including their cost. But it’s important to consider what your family might pay if you pass away. In 2021, the average cost of a funeral and burial was $7,848, and this doesn’t include paying for a cemetery monument, marker, flowers or obituary.³
Fortunately, life insurance can help the surviving parent pay for these expenses. Most often, families use life insurance policies to pay for:
- A memorial service
- Burial
- Flowers
- Obituary
- Family members’ travel needs
- Estate taxes
- Legal support
- And more
Many people underestimate funeral expenses and think they’ll return to work quickly. Unfortunately, this isn’t always true. Funeral expenses are surprisingly costly, and most often, the remaining parent needs to take time off to grieve and get family responsibilities in order.
A good life insurance policy can help cover these costs. In fact, an Amica National Life Sales Representative recommends considering a whole life policy. Term life insurance can cover a salary and daily expenses while you raise a family. Meanwhile, a whole life policy can cover end-of-life costs indefinitely.
It’s easier to get a policy when you’re younger and healthier
Rule of thumb: The earlier you get life insurance, the better. You should consider life insurance during big life events, like getting married or buying your first home. This is often when couples first combine their finances and learn how to be financially codependent. It’s a great time to speak with an insurance representative, especially if you know you’d like to have a family one day.
Getting life insurance for stay-at-home parents can be simple and fast, especially if you’re healthy. The hardest part is opening yourself up to the conversation.
“It’s tough to talk about this sort of thing. But at Amica, we really try to take care of our customers and help them determine how much life insurance they need,” the National Life Sales Representative says. “It’s hard to put a price tag on a stay-at-home parent’s work. We’re here to recognize their value and ensure families are cared for during the hardest of circumstances.”
Get a life insurance quote today
FAQs
Many do. Even without earned income, a stay-at-home parent may provide childcare, transportation, meals and other support that could be expensive to replace.
That depends on your family’s needs. Many households look at childcare, household help, debt, housing costs and how long children may rely on a parent financially.
The policy types may be similar, but the way families think about coverage can be different. Instead of replacing a salary alone, they may also look at the cost of replacing daily caregiving and household support.
Some families consider term life insurance for needs tied to child-rearing years or a mortgage, while others review whole life for longer-term goals and final expenses. The right fit depends on budget and coverage goals.
In many families, yes. If either parent dies, the surviving household may face financial strain, whether that means replacing income, replacing care or both.
How Much is a Mother Really Worth?, Salary.com, 2022.
What You Should Know About Buying Life Insurance, American Council of Life Insurers, 2022.
National Funeral Directors Association, Statistics, 2022.
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ALIC81922 Jan-27