Are You Underestimating Your Partner's Role? The Financial Impact of a Stay-at-Home Parent
Why Both Parents Need Life Insurance Coverage, Even Stay-At-Home Parents
One very common misconception that we have when searching for life insurance, is to look for coverage for just the bread winner. Its obvious, if they pass away, then the family would be under huge financial stress. However, a less talked about problem is, what happens when the stay at home parent were to pass away? Just do a casual accounting of all the services the stay at home parent does on a daily basis. Then look up what those services would cost you if done by someone else. What you would find might shock you. So, let me make the case that it’s not just the bread winner that needs a life insurance policy, but the stay-at-home parent, too.
Commercial value of stay-at-home parent
Let’s break down the various tasks that a stay-at-home parent manages every day. From cleaning and cooking to transportation and tutoring, these responsibilities add up to a substantial value. For instance, outsourcing these tasks might look something like this:
- Cleaning: $660/month
- Shopping: $226/month
- Cooking: $394/month
- Laundry: $357/month
- Transportation: $222/month
- Emotional support: $2,226/month
- Tutoring: $116/month
- Planning and administration: $368/month
Together, these services can cost you as much as $4,560 every month to maintain the household. If you multiply that by 20 years, you’re looking at approximately $1.1 million, just for the tasks your partner currently handles around the house. This staggering figure is a reminder that the role of a stay-at-home parent is invaluable and should be recognized in your life insurance planning.
Real world impact on surviving spouse
Once the stay-at-home parent passes away, the working parent is hit with immediate disruption. The surviving parent will need time to start managing the household and to grief. Finding a nanny to manage the house and take care of the child doesn’t happen overnight. Time is needed to vet the nanny and find the right daycare for the child. This overwhelming combination of professional and household duties can drastically change the trajectory of the working parent.This can lead to immediate career disruption. You may be unable to maintain your current job due to increased responsibilities. You might need to search for a less demanding job, reduce your work hours, or change careers entirely. It may take up to 6 months for you to settle your grief, and be ready to enter the work force again. What could that cost you in lost income?
In conclusion
We can’t think that just the working parent needs to be covered. The stay-at-home parent contributes immensely when it comes to the household, and costs associated with it. Covering both parents is essential to having piece of mind, knowing that your family will be taken care of during the worst moment in their lives.
* All numbers came from: https://beikecelltherapy.com/studies/the-value-of-the-stay-at-home-parent-in-2024.html
