One of the ways you can protect your assets is through insurance. While you don’t need all types of insurance, there are some types of insurance that you need. One of those types of insurance is life insurance.
Of course, life insurance is meant to protect your family. It seems obvious that you need life insurance if you are the primary breadwinner. The life insurance will help your family pay for their financial needs if something happens to you.
But what about life insurance coverage on a stay at home partner?
Life Insurance and a Stay at Home Parent
Life insurance should be part of your comprehensive financial plan, and that includes life insurance for your stay at home partner. Another type of life insurance cover that we are asked about commonly is Mortgage Life Insurance, check out our post on the pros and cons of Mortgage Life Insurance Coverage.
At first, it may not seem as though your someone who stays at home most of the time, or has a part-time job, needs to be covered with a life insurance policy. However, it’s important to consider the value of the services that someone who stays home provides. Some of the things that a stay at home partner might take care of include:
- Bulk of the cleaning
- Significant amount of the cooking
- Child care
- Running most of the errands
We rarely think to put a monetary value on the things that a stay at home partner might do. However, the things that a stay at home parent does are hard to replace, especially if you need to hire someone to take care of some of the “chores” that your stay at home partner takes care of.
Consider the possible costs involved, as well as the idea that you might decide to cut back on the hours that you work in order to be at home more if your partner passes on. While you might not pay for the same coverage amount on a stay at home partner, it is still important that you consider the possibility (no matter how unpleasant) that your partner might pass on, and leave you with various expenses that you didn’t expect. Life insurance coverage can help offset those costs.
The life insurance coverage can also help you cover expenses that are expected in the event of a death, such as funeral costs, and time you might take off work in order to grieve and re-order your affairs.
What about Other Employment Situations?
It’s always a good idea to consider what you might do if something happens to your partner, no matter his or her employment situation. Even though I’m the primary breadwinner, and I do it from home, we still have a life insurance policy on my husband. What he makes isn’t a huge amount of money, but it’s still enough that we would miss it if he were gone.
Whether it’s a side hustle, a part-time job, or some other circumstance, it makes sense to consider the possibility that the income needs to be replaced. And, even if your partner doesn’t have what society considers a “job,” he or she does provide great value in the household. Really think about that value, and make sure that the life insurance coverage you have for your partner is adequate.