For people wishing to protect their possessions and lives in the event of accidents or other disasters, life insurance is one of the most popular coverage options. People buy life insurance for a variety of reasons, but one of the most important, Bill Schantz states, is the need to replace income when breadwinners pass away. Life insurance is especially critical for families who rely on a single source of income.
This raises the question of whether people who do not work, such as stay-at-home parents, need life insurance. Yes, it’s as simple as that! This is why:
The Financial Contribution of Stay-at-Home Spouses Is Irreplaceable, Bill Schantz Explains
Stay-at-home parents also provide financial support, despite the fact that it is not obvious. Experts feel that replacing the services provided by a stay-at-home parent would be prohibitively expensive. Taking care of children, cooking meals, running errands, and a range of other chores that these people perform for little or no pay can become time-consuming if families have to employ help.
Based on data from Salary.com, Bill Schantz calculated that replacing the occupations that stay-at-home parents do can cost an average of $178,201 each year. During the epidemic, this amount soared to $184,820 as the workload rose dramatically. A stay-at-home parent can hold over 20 distinct jobs at any same time, making them incredibly useful to the family. These data provide a compelling case for people to purchase life insurance.
Another Consideration Is the Cost of Child Care
The above-mentioned median wage does not include the expenditures of child care that a stay-at-home parent saves. With costs rising all the time, families may expect to pay anywhere from $11,000 to $29,000 per child each year in child care costs. This includes the costs of a daycare center, after-school care, a nanny, and other related expenses. Replacing these fees, according to Bill Schantz, can be a major problem for people with families.
Stay-at-Home Parents Must Have Life Insurance, According to Bill Schantz
Because the most important reason to purchase life insurance is to replace income, there is a lot of evidence to support buying coverage for stay-at-home parents. According to Bill Schantz, even though the topic is incredibly difficult to discuss, it is nevertheless necessary to argue. A life insurance policy, in the event of an accident or untimely death of a stay-at-home parent, not only helps replace the gaps in financial support that is needed in their absence, but it also helps pay for last expenses and any other debts that they may have.
Conclusion
Parents who stay at home with their children are an important element of every family. Despite the fact that they do not earn as much as most employed people, they provide help that would be prohibitively expensive to replace. Stay-at-home parents are valuable assets who require life insurance just as much as other working parents. As a result, it’s a good idea to invest in coverage for them as well.