There are misconceptions about who needs life insurance. Often, it’s thought that homemakers do not need life insurance. This is because life insurance is usually used to replace lost income. For homemakers, life insurance is absolutely necessary. Many things are lost with the death of a homemaker.
With the loss of a homemaker, there are many different financial needs to be taken care of. Homemakers take care of lots of things at home, which means that those tasks will need to be taken care of in other ways. This typically costs money.
The Cost of a Home Maker
As mentioned, the homemaker is responsible for a wide variety of tasks. They take care of laundry, cleaning, cooking, driving the kids, and so much more. If
If all of the work a homemaker does was outsourced, it would cost more than $162,000 annually. While a homemaker does not get paid for the work they do every day, those tasks would need to be outsourced if the homemaker passed away.
Unforeseen Expenses
In the case of the homemaker’s death, there are all kinds of tasks that will need to be outsourced. These costs can add up, which is why it’s important to have life insurance. Then, the expenses can be covered. These are some of the unforeseen expenses that will need to be taken care of in case of the homemaker’s death.
Driving
The homemaker is likely responsible for driving the kids to and from school and activities. If the other spouse is not home during the needed times, this falls solely on the homemaker. If the homemaker passes away, transportation will need to be arranged. This might mean that a friend or family member helps drive the kids around if the surviving spouse cannot. This also applies to appointments, such as doctor’s or dentist’s appointments.
Food and cooking
The homemaker likely does the cooking for the family. While the other spouse is at work, the homemaker is responsible for packing the kids’ lunches, preparing meals, and more. If the surviving spouse is at work all day, it can be difficult to manage everything, including meal preparation. For this reason, someone may need to be hired to prepare meals. The surviving spouse might also choose to use a food delivery service to provide the needed groceries and meals for the family.
Education or tutoring
If the homemaker in your family is responsible for any of your children’s education, you may need to hire a tutor. A tutor can help with homework and other school-related tasks. If your children get out of school before the surviving spouse is out of work, the children may need to stay for after-school care or activities until they can be picked up. This may apply in the morning as well, depending on the surviving parent’s schedule.
Cleaning
The homemaker likely does the cleaning in the home. If the surviving spouse doesn’t have the time to clean, they may need to use a cleaning service. This may be done weekly, bi-weekly, or monthly, depending on the cost. Still, some tasks, such as dishes and laundry, will need to be taken care of more often.
Childcare
If the homemaker stays home with one or more children who are not of school age, childcare is necessary. The surviving spouse may need to hire a nanny or take the children to daycare. Childcare can be very expensive, which is why life insurance may be necessary to help cover those costs.
Errands
The homemaker is likely responsible for running errands throughout the day. This might include tasks like going to the post office, bank, and more. Because of the business hours of some of these locations, it may be difficult for the surviving spouse to do these tasks due to work hours. In some cases, extra help may be needed to ensure the errands are complete.
How Much Coverage to Get
All of the reasons listed above are good reasons for a stay-at-home parent to get life insurance. That leaves the question of how much life insurance to get. It’s important to start with at least $10,000 worth of life insurance. This is solely to cover funeral and burial expenses. Based on all of the tasks mentioned, more insurance is definitely necessary.
Keep in mind that there might be unpaid medical expenses to cover as well if the homemaker was sick. As a result of illness, there might also be childcare expenses and more.
When considering life insurance for a homemaker, $250,000-400,000 worth of coverage is a good place to start. Wealthier people should get more coverage. Less wealthy people should get less coverage.
It’s a good idea to get term life insurance. This is life insurance that lasts for a set term or duration of time. Most people choose a term policy that lasts for as long as they have kids in the home. Once the kids are no longer dependent on mom and dad, the policy is no longer needed.
Home Makers Must-Have Coverage
If the homemaker in your family passed away, you would be left to find someone (or several people) to take over those tasks that your loved one was once responsible for. You would likely have to hire a handful of people to make sure that all of the cooking, cleaning, and childcare are taken care of.
As mentioned the cost of a homemaker is more than $162,000 annually. This wouldn’t be a cheap or easy task. With the financial reliability of life insurance, you can make this difficult time a little bit easier.
Without life insurance, you will have to cover all of those expenses on your own while you are grieving. This can put a lot of stress on you, especially if you are not prepared for this financially. By having life insurance for a homemaker, you are ensuring that your household keeps running smoothly, regardless of your financial situation.
Life insurance is a small price to pay to make sure that your family is covered in case you lose your homemaker.
