Consider the hours a stay-at-home spouse spends caring for the family: preparing meals, washing dishes and clothes, and running errands, among other tasks. With all of the different roles your loved one performs, homemakers could be considered the CEOs of their families. Unlike CEOs, however, stay-at-home spouses don't earn an income.
Salary professionals, who base their findings on average salaries paid to workers who do the same jobs an at-home spouse handles, figure such a salary could range between $40,000 and $100,000—and that's without overtime. Although your spouse may not have an income to protect, if your loved one died, the financial impact on your family could be extreme. That's why homemakers shouldn't be left without life insurance coverage.
Purchasing the right amount of coverage is important in helping to preserve your family's lifestyle. Some financial professionals recommend an insurance amount between 5 and 10 times the amount of income. Replacing an at-home spouse's calculated "income" could mean a minimum of $200,000 in coverage.
Adequate insurance coverage could allow you to afford the household help your family may require. For example, if a stay-at-home spouse died, the family may have to pay for childcare, which can cost thousands of dollars a month, as well as for transportation to and from school and extra-curricular activities.
If your stay-at-home spouse spends just four hours a week in the car transporting the kids, that bill can add up to over $3,000 per year. If she spent another 6+ hours each week washing, folding and ironing her family's clothes, that's another $3,000 each year for laundry services. Paying someone to handle the family's housekeeping chores and meal preparation could run upwards of $22,000 every year. Plus, the family may need to pay tutors for the children. The costs continue to mount.
Besides the devastation of losing a stay-at-home spouse, your family may also have to deal with additional expenses. If new household expenses, like the ones above, would negatively impact your family’s lifestyle, you should make sure your at-home spouse is covered for the right amount of life insurance.
You and your spouse both play an important role caring for your family and running your household. Help make sure that, should the worst happen, your lifestyle will be protected. Making sure your loved one has the right amount of life insurance is an often overlooked, but important step to protecting your family.
This article is provided for general informational purposes only and is not intended to provide individualized business or legal advice. The information contained in this article was compiled from sources that Affinity considers to be reliable; however, Affinity does not warrant the accuracy or completeness of any information herein. You should discuss your individual circumstances thoroughly with your legal and other advisors before taking any action with regard to the subject matter of this article.