You can’t put a price tag on a human life, but life insurance and living benefits insurance can be a safety net for a family, replacing lost income if a working parent dies. But losing a non-earning family member can also have significant financial impacts. Here’s why stay-at-home parents should also have life insurance.
Financially Valuable Work
They may not get a salary, but stay-at-home parents contribute to the family’s finances. Take childcare, for instance. The average monthly cost of childcare for Halifax families was recently estimated at between $853 and $957. Besides childcare, stay-at-home parents provide such valued services as:
Housekeeping
Laundry
Gardening
Pet care
Meal preparation
Tutoring
Driving
A life insurance policy can help cover costs for these services and spare bereaved family members from taking on additional responsibilities.
Funeral Costs
If a stay-at-home parent dies, they’ll need a funeral and burial or cremation. The average funeral cost in Nova Scotia has been estimated at more than $10,000. Having a life insurance policy can help offset these costs.
Better Now Than Later
It’s best to buy life insurance while you're young and healthy because you can lock in lower premiums. If your marriage ends and you find yourself with reduced finances, you may be glad you already have life insurance. A change in marital status won't void your life insurance policy, but you may find it more difficult and expensive to secure a policy.
Considerations When Choosing a Life Insurance Policy
Coming up with a dollar amount to reflect the value of your work is challenging if you don’t have an income. Here’s what to consider when choosing a life insurance policy.
Family size. The more kids you have, the larger the insurance policy you should buy because it’ll be more expensive to care for them if you die. You’ll need an insurance amount that can support all your children until they no longer need care.
Returning to work. If you’re thinking about returning to work or starting a career, consider what your income is likely to be. Your household spending will rise with more revenue, and your policy should be enough to maintain that level of lifestyle. You may also lock in lower premiums now than if you waited to return to work.
Speak with an experienced life insurance broker to learn more about which policy would best protect your family.
Life Insurance for Halifax Families
Eisenhauer Insurance Inc. is a trusted life insurance broker for Halifax families. We’ll assess your lifestyle and needs and then help you find an affordable policy that keeps your family financially secure. Contact us today to speak to one of our brokers.