“`html

Why Stay-at-Home Parents Need Life Insurance

Stay-at-home parents contribute immensely to their families, often in ways that aren’t easily quantified in monetary terms. However, their economic value is significant, even without a traditional paycheck. For instance, a 2023 Care.com study revealed that families spend about 24% of their household income on child care. The weekly average cost for child care is $293 per child, or $755 for a nanny. If a stay-at-home parent were to pass away, the surviving parent would need to cover these expenses out-of-pocket. This is why life insurance for stay-at-home parents is crucial.

What Life Insurance for a Stay-at-Home Parent Can Cover

Life insurance can help ease the financial burden on the surviving parent by covering the costs of services the stay-at-home parent used to provide. These services include:

• Child care
• Housekeeping
• Meal preparation
• Driving
• Teaching and tutoring
• Pet sitting

A 2021 Salary.com study estimated the median annual salary equivalent of a stay-at-home parent at $184,820. This figure highlights the cumulative value of the daily tasks they perform. If something happens to them, the other parent might have to pay a substantial amount for these services.

How Much Life Insurance Does a Stay-at-Home Parent Need?

Determining the right amount of life insurance for a stay-at-home parent involves considering the costs of replacing the services they provide. Here are some guidelines:

• Child care costs: Investigate the costs for child care services in your area. If you have a larger family, adjust your death benefit accordingly.
• Household help: Factor in the cost of hiring a housekeeper. The average hourly cost is $15, according to Housekeeper.com.
• Children’s ages: Ensure your death benefit covers your children’s needs until they are adults.
• Surviving parent’s work plans: Increase the death benefit if the surviving parent plans to reduce work hours or take time off to grieve.

Working with an independent insurance agent can help you find the most suitable policy. A professional agent can tailor a policy to your specific needs and goals.

Additional Financial Security

In addition to life insurance, building an emergency fund and maintaining good credit can provide extra security. This can be especially important if the working parent loses their job. Consider checking your credit report and score regularly and take steps to improve your credit if necessary.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of financial security for your family. If you need assistance with mortgage services, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you find the best solutions for your needs.

“`