Adequate life insurance is something that many families overlook. While the working parent might have access to a life insurance policy through his or her employer, the parent who stays at home with the children will not have this luxury.
Since a stay-at-home mom doesn't necessarily generate income, it can be easy to think that a life insurance policy isn't needed to protect the family against financial harm. This is simply not true. A valid life insurance policy will help offset the financial costs associated with losing a stay-at-home mom unexpectedly.
Value of Labor
While a stay-at-home mom doesn't go to work and receive a paycheck, the labor that she provides to her family can have significant value. A stay-at-home mom acts as a housekeeper, chef, tutor, childcare provider, and chauffeur. Hiring someone to fulfill each of these duties in the absence of a stay-at-home mom can be quite costly.
Be sure that you are considering all of the labor that a mother contributes to the household when determining how much life insurance is needed to protect the family in the event of her loss.
Just because a woman stays at home with her children now doesn't mean that she won't return to the workforce once the children begin attending school full-time. A lot of stay-at-home moms take on part-time work during the day while children are in school. A life insurance policy needs to take into account the value of this future income.
A mom's wages can help to pay off debt, cover the cost of extracurricular activities, and contribute to a child's college fund. A life insurance policy that provides money in the event of a mother's passing can ensure that the family will still benefit from the future income that she might have earned.
A life insurance policy can be used as a way to gain access to a lump sum of money. Permanent life insurance policies let the policy holder borrow against the value of the policy while they are still alive.
The funds from a permanent life insurance policy can be used as a down payment on a new home, to cover unexpected medical costs, or to help pay for college tuition. As long as the premiums are paid on time, a permanent life insurance policy will provide lifelong benefits that allow a stay-at-home mom to contribute to the financial well-being of the family.
For more information about life insurance policies, visit websites like https://www.dainsurance.com/.