Life Insurance for Stay-at-Home Parents: Why It’s Essential

connecttocoverage
Sep 9
2 min read

Stay-at-home parents need life insurance too. Learn why coverage matters and how to calculate the right amount for your family. Many families overlook life insurance for stay-at-home parents because they don’t earn a traditional salary. But their contributions—childcare, household management, transportation—are extremely valuable. If something were to happen, replacing those services would be costly.

Why Stay-at-Home Parents Need Life Insurance

Childcare Costs: Full-time childcare averages $10,000–$15,000/year per child.
Household Management: Cooking, cleaning, transportation, and errands all add up.
Education & Tutoring: Stay-at-home parents often support children’s learning.
Peace of Mind: Ensures surviving spouse can focus on family, not finances.

How Much Coverage is Enough?

A good rule of thumb is to estimate the annual cost of replacing these services and multiply by the number of years until children become financially independent.

Example:

Childcare: $12,000/year × 10 years = $120,000
Household support: $8,000/year × 10 years = $80,000
Education support: $5,000/year × 10 years = $50,000

Total Coverage Needed: $250,000

Best Policy Options

Term Life Insurance

Affordable option to cover years while children are dependent.

Whole Life Insurance

Permanent coverage with savings value.
Can be used for estate planning.

Index Universal Life (IUL)

Flexible with investment growth potential.

Appeals to families seeking long-term wealth building Key Insight: Insuring stay-at-home parents is usually less expensive, making it highly affordable protection. Real-Life Example

A family with two children insures their stay-at-home mother with a $250,000 20-year term policy for $12/month. If she passes unexpectedly, the policy covers childcare and household expenses while the father continues working.

Bottom Line

Life insurance for stay-at-home parents is just as important as for income earners. It ensures families can maintain stability and continue moving forward without financial hardship.

👉 At Connect to Coverage, we help families protect both working and stay-at-home parents. Request your family insurance plan today.