Life Insurance for stay-at-home parents

TomorrowMakers ™

Life Insurance for stay-at-home parents

15 July 2015
One should never underestimate the financial value of a stay-at-home parent. After all, there is also an opportunity cost associated with their decision to stay at home.

Yes, you need life insurance as well.

Are you a stay-at-home parent? Have you driven away all the insurance advisors who asked you to avail insurance? Logically speaking, buying life insurance makes sense only to the wage earner and sole provider, right? Perhaps it is time for you to reconsider that belief.

What does a stay-at-home parent really earn?

The essence of life insurance is to compensate for the financial loss caused by death. A common misconception is that a stay-at-home parent does not provide any monetary support to the family, and hence, does not need life insurance.

But we have to consider the fact that the services rendered by this parent are many, and- if outsourced- quite expensive.

Why does the stay-at-home parent need insurance?

The stay-at-home parent wears many hats – that of a full time nanny, a cook, a cleaner, a tuition teacher, an accounts manager and even a psychologist. Now, imagine losing this willing, multifarious worker.

What would the family do? The family will have to outsource all the tasksperformed by the stay-at-home parent. This would mean throwing the financial plans of the family off track and, as a consequence, incredible losses for the family.

What should be the sum assured?

Okay, you agree that you need life insurance after all. But, what expenses should the policy cover?

  • Household expenses

The key objective of insurance is to cover the economic losses caused due to death. Hence, the policy sum assured should cover the expenses towards all the household tasks, for a few years at least.

  • Funding for children’s education

The policy should help towards your children’s education and the childcare costs likely to be incurred.

  • Loans

Your policy should be able to contribute toward any loans your spousemight be servicing.

One should never underestimate the financial value of a stay-at-home parent. After all, there is also an opportunity cost associated with their decision to stay at home.

 
 

MOST VIEWED CONTENT

5 Mistakes you must avoid when buying a term plan

5 Mistakes you must avoid when buying a term plan

Buying a term insurance plan is an important decision that must be done carefully if you want to get the most out of it.

Do not make the same mistakes I did by ignoring term plans

Do not make the same mistakes I did by ignoring term plans

If you give any of the mention excuses, you might be inviting a trouble in yours and your loved one''''s life. Read and take a smart decision of buying a term plan to create a shield around you and your family

What makes buying life insurance online click?

What makes buying life insurance online click?

From buying mobile phones to placing orders for grocery items Indians are getting hooked on online shopping in a big way. Till a few years ago life insurance was mainly bought offline but now customers are also showing increasing interest in buying life covers online.

Term vs whole life insurance

Term vs whole life insurance

You’ve decided to provide financial security for your family and subscribe to a life insurance policy, but are stuck in the age-old debate – Term or Whole Life insurance?

Top 6 factors that affect how Life Insurance premium is calculated

Top 6 factors that affect how Life Insurance premium is calculated

Have you ever wondered why you are asked to pay lesser premium than your friend or family member? To end the confusion, we have prepared a list of factors that affect how life insurance premium is calculated.

Comparison of PPF and life insurance: Which comes first?

Comparison of PPF and life insurance: Which comes first?

Protection first, savings next is the best advice. Your planning should rest on two pillars, protection and saving.

Have you heard about Term Plans that payback?

Have you heard about Term Plans that payback?

These are the new-age term plans that, along with the usual benefits of a term plan, return all the premiums in case the policyholder survives the policy term.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER