Does a Stay-at-Home Spouse Need Life Insurance?
A stay-at-home spouse is perhaps one of the most under-appreciated persons in our society. However, purchasing life insurance for those who stay at home is often overlooked when families sit down and work through their financial plan.
Life insurance is usually thought of a product designed to replace income. Because stay-at-home spouses do not generate income, families mistakenly believe they do not require life insurance.
But nothing could be further from the truth!
The reality is life insurance actually replaces the purchasing power of someone’s income. Purchasing power that can pay for ongoing bills, debt payments, and other financial obligations. For the stay-at-home spouse, life insurance can provide the funds necessary to replace the services they provide.
Consider the cost of replacing all the services a stay-at-home spouse provides:
- Pet care – $15/hr
- Private tutor – $40/hr
- Family nurse – $75/hr
- Personal chef – $60/hr
- Taxi service – $.50/mile
- Family therapist – $65/hr
- Hourly childcare – $15/hr
- Personal shopper – $20/hr
- Finance consultant – $75/hr
- Laundry services – $10/load
- General housekeeping – $25/hr
- Amateur plumber/electrician – $55/hr
- Hazmat waste (diapers/litter) removal – $45/hr
A little arithmetic quickly reveals how valuable stay-at-home spouses really are. This list is hardly compressive. It does not take into consideration the intangible contributions stay-at-home spouses make such as providing emotional support or keeping the family’s social calendar full.
Once it becomes clear, life insurance for a stay-at-home spouse should become a part of your family’s financial plan, the next step is determining how much coverage to purchase. However, calculating a suitable limit is not an exact science with so many variables to take into consideration.
If you are looking to learn more about your life insurance options and how to choose the right limit to protect your family, contact my office to schedule an appointment today.