Aflac: Do Stay-At-Home Moms Need Life Insurance Coverage?

Stay-at-home moms don’t often earn an income, so many may believe they don’t need life insurance or even know what life insurance is.

However, maintaining a household and taking care of the kids is a lot of work, and that work has financial value.

If one passes away, one’s spouse must cover childcare and housekeeping costs while continuing to financially provide for themselves and save for future goals.

This article will explain how life insurance can help stay-at-home moms and cover some factors influencing how much to purchase a policy.

3 Reasons life insurance can help stay-at-home moms

Here are a few ways life insurance can help stay-at-home moms and their families:

1. It helps cover end-of-life expenses

Funerals alone can cost around $8,300.¹ One’s spouse may also have to take time off work, causing a drop in income or use of PTO.

A life insurance policy payout can help the surviving spouse cover these costs.

Even a small policy, like an end-of-life policy designed to help with these costs, provides enough funds to help handle these types of expenses.

2. It helps cover childcare and housekeeping costs

Childcare and housekeeping have significant values to them. In a stay-at-home mom’s absence, their spouse may need to pay substantial additional costs to hire people to help with child-raising and housekeeping tasks.

For example, they may need help to cover costs for:

• Daycare
• Laundry
• House cleaning
• Gardening
• Tutors
• Drivers

The life insurance payout can provide the spouse with the funds to help pay for each of these, ensuring they can raise their child well.

3. It helps cover financial goals

Life insurance can be extremely beneficial for a stay-at-home mom’s spouse to help cover current expenses related to housekeeping and child-raising.

However, the spouse can use any remaining funds for their own and their child’s future goals.

For instance, one’s spouse can save some of the payout for their child’s college, to help ensure they can get a great education with less debt.

Meanwhile, a stay-at-home mom’s spouse can use some of the funds to supplement their emergency fund and retirement goals to help secure their financial future.

They could also use the funds to help with long-term care expenses or to care for their aging parents.

How much life insurance should stay-at-home moms get?

A stay-at-home mom may wonder “how does life insurance work?”, especially if they don’t earn an income.

In general, they can get life insurance if their spouse has life insurance. They’ll likely qualify for a death benefit equal to their coverage.

That said, if one’s spouse earns a large enough income and has a huge policy, insurers may limit the amount one can apply for. A stay-at-home mom may also need to provide some extra justification for why they’re seeking the specific coverage amount.

That said, stay-at-home moms don’t typically need to get the maximum amount of allowed coverage if they don’t need it. Getting coverage they don’t need will cost extra.

Here are some factors to consider when calculating life insurance needs:

• Working parent’s income: If the spouse earns a significant income, they may not need as much financial assistance if the stay-at-home parent passes away. The stay-at-home mom may be able to get a smaller policy.
• Childcare/housekeeping expenses: If the family has a larger house and their children have more complex needs, the stay-at-home mom may consider a larger death benefit.
• Other expenses: Other expenses, from necessary costs (like housing) to discretionary spending, will influence how much coverage a stay-at-home mom may need.
• Family size: If a family has several children, a stay-at-home mom may consider a larger policy since the spouse will need extra help.
• Future financial goals: The amount needed for college savings, retirement, and similar goals impact how much life insurance may be needed since the surviving spouse may need some remaining funds after other needs are covered.

Ultimately, use a life insurance calculator and consider speaking with a financial advisor.

Stay-at-home moms can benefit from life Insurance

Being a stay-at-home mom is hard work and, thus, has significant financial value. This is where life insurance can be helpful.

Life insurance can help the surviving spouse cover end-of-life expenses, help cover childcare and housekeeping costs, and/or help save for future goals.

The exact amount a stay-at-home mom may need depends on the spouse’s income, their expenses, and several other factors. Working with a financial advisor and life insurance agent can help individuals determine the right amount and navigate the process to find the coverage they desire.

Sources:

¹ USA Today – How much does a funeral cost in 2024? Updated April 10, 2024. https://www.usatoday.com/money/blueprint/life-insurance/how-much-does-a-funeral-cost/. Accessed September 2, 2024.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.

Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.

Aflac life plans – B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.

Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.

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Contact: Angie Blackmar, 706-392-2097 or [email protected]