(We’re talking to you, mama.)
If you’re a stay-at-home parent, you may be thinking, “I don’t bring in a paycheck, so I don’t need a life insurance policy.”
Think again. Just because you don’t get paid in dollars doesn’t mean you’re not contributing massive value to your family. If anything, the work you do is priceless. And replacing it? That can be pretty expensive.
Don’t overlook the value of life insurance for stay-at-home parents. After all, insurance isn’t just for breadwinners. It can help protect your family if the unthinkable happens to you, too. In this article, you’ll learn what life insurance covers, why you need it, and the steps to take to make sure you’re covered.
The invisible paycheck: The value of a stay-at-home parent’s job
Every day, you run kids to school, soccer practice and doctor appointments. You plan meals, grocery shop and deliver dinner on time. Perhaps most stressful, you manage your family’s increasingly complicated calendar.
If someone else had to do your job, how much would it cost? Before you say, “I don’t get paid,” imagine outsourcing everything you do, from laundry to cooking to driving. If you’re not there, your family would likely have to pay professionals to help. For example, they might have to enlist a:
- Daycare provider or nanny.
- Meal delivery service.
- House-cleaning service.
- Lawn-care service.
- Tutor.
- Nurse.
- Laundry-service provider.
- Driver (for kids’ activities and school pickup).
- Mental health counselor.
- Interior designer and decorator.
Now add up the bill. According to one study that considered households with two children, if a stay-at-home parent were paid for their work, their annual salary could be up to $62,400 depending on where they live. Yes, you read that right. And that doesn’t even include the emotional labor involved!
The bottom line – if something were to happen to you, it would be devastating, both emotionally and financially. You’re the engine that keeps your home running. Without you, your family would need to hire help to keep everything together and moving smoothly. Life insurance makes sure your family can afford that help.
What life insurance for a stay-at-home parent can pay for
Most people know life insurance covers mortgages, utilities and funeral costs. But it can do so much more too. If something were to happen to you, life insurance can allow your family to get the help they need.
Child-care services
Right now you watch the kids full time. But if you’re no longer there, your partner will need to pay for child care, whether it’s day care or a nanny. And spoiler: full-time childcare isn’t cheap. According to Childcare Aware of America, the average annual cost of care in 2024 was $13,128. That’s just for one child. Multiply that by the number of kids you have until they hit middle school, and it adds up fast.
Household help
Laundry doesn’t do itself. Dishes don’t magically unload. Meals don’t just appear on the table. If your partner works full-time, your family will need household help to cover cleaning, cooking and laundry – and this costs money. Life insurance could pay for house cleaning and a meal-delivery service or frequent takeout. It can even help cover the cost of delivery services to help run errands.
School and activity expenses
Many stay-at-home parents are the ones coordinating school pickup, helping with homework, and driving to after-school activities. If you were gone, your family might need extra tutoring, transportation services, and someone to help your kids keep their routine. Additionally, you may have already opened and contributed to a 529 savings plan for future education expenses. With life insurance, you can help offset those costs and protect existing college savings.
Emotional support
Loss is traumatic, especially for children. Often, families use life insurance funds to cover counseling as kids grieve. That kind of support is invaluable – and it can help your family heal more fully.
Time off work
An unexpected loss is life-shattering. If your partner needs to take time off work to handle the household, manage logistics or simply to grieve, life insurance can provide a financial cushion that allows them to breathe. This way, they won’t have to rush back to the daily pressures of work so soon.
When to get life insurance (hint: as soon as you can)
If you’re a stay-at-home parent with children at home, don’t wait. Now is the time to get life insurance. The younger and healthier you are, the more affordable your premiums may be. Plus, having coverage in place is one thing you can check off your to-do list.
Even if you plan to return to the workforce in a few years, it still makes sense to get a policy now. Rates are lower when you’re younger, and locking in coverage earlier means you’re covered during your family’s most financially vulnerable years.
If you’re about to have a baby or secure a mortgage, it’s also a great time to check in on your coverage. Often families get a new policy (or increase their policy) when they:
- Get married.
- Buy a new home.
- Have a first (or second or third) child.
- Shift to one income.
Let’s face it. Life changes and so do your expenses. When that happens, it’s wise to talk to someone about life insurance for stay-at-home parents.
What type of life insurance should a stay-at-home parent get?
Maybe you’ve heard these of these types of life insurance – term, whole and universal. But what do they mean?
Term life insurance
This is often a good option for stay-at-home parents. It covers you for a specific “term” (10, 15, 20 or 30 years) and pays a death benefit to your beneficiaries if you pass away during that time. It’s affordable and straightforward, which is perfect if you’re raising kids and just want solid coverage during those years.
Whole life insurance
This type of policy lasts your entire life (not just for a specified time period) and builds cash value as long as premiums are paid. It’s ideal if you want peace of mind, knowing your family is covered for your whole life. With whole life, your premium is fixed, so you can also plan for long-term costs. There may also be options to access cash value through a loan or withdrawal.
Universal life insurance
It’s similar to whole life insurance, but it’s a bit more flexible. With universal life insurance, you can adjust your premiums and death benefits if your needs change. Like whole life insurance, universal life insurance also builds cash value that’s tax-deferred. You can also take money out or take a loan, but depending on your policy, it could reduce the death benefit or how long the insurance may be in force.
Have questions about what type of life insurance coverage is best for you? Talk to a Modern Woodmen representative. Our team can walk you through the pros and cons of each – and guide you to the right policy.
Where (and how) to get life insurance coverage
Good news. Getting life insurance isn’t as intimidating or time-consuming as it used to be. And Modern Woodmen representatives are here to help because we know your to-do list is long and every minute of your day counts. We can guide you through the process and your options.
First, check out our guide to the life insurance process. It’ll explain how to qualify and what to expect when applying. Then:
- Give a financial representative a call. You can find your closest rep here.
- Decide your insurance type and coverage amount. Work with your rep and ask questions along the way. Our team is here to help make it super clear.
- Complete the application. You’ll notice there are a few questions about your health, lifestyle and family. Be transparent – it’ll help us offer the best coverage for your situation.
- Complete a medical exam (if needed). You may be asked to complete a 30-minute medical exam. This helps us know more about you and offer accurate rates.
- If approved. You’ll begin paying premiums once any approved coverage goes into effect.
Don’t forget – you’re worth protecting
Just because you don’t receive a regular paycheck, it doesn’t mean your value isn’t immense. You’re the glue that holds your family together. If you’re no longer there, your family will need extra support. The bottom line is stay-at-home parents need life insurance.
You already protect your family in every other way. Now it’s time to protect them financially – even from things that are hard to imagine.
If you’re ready to discuss life insurance, talk to a Modern Woodmen representative in your region. It’s easy to find your local rep by zip code or name.