Protecting The Stay-At-Home Spouse | Valerie P. Kaiser, CFP

LWMNovDec2014small_Page_10When married couples have young children, often one spouse stays home while the other works outside the home. While most parents understand the necessity of purchasing a life insurance policy on the income earner, few realize the importance of also insuring the stay-at-home spouse.

Being prepared for the unexpected.

What if the stay-at-home spouse suddenly died? The family would be devastated. While friends and family members would initially pitch in to help, eventually they would return to their regular lives. Before the surviving spouse returned to work, a caretaker for the children and home would need to be hired, presenting a potential financial hardship. Had life insurance been purchased on the stay-at-home parent, however, the family’s needs would have been protected.

Measuring the value of the stay-at-home spouse.

Despite the importance of the stay-at-home parent, there’s little research to quantify its value. In its 13th annual “Mom Salary Survey,” Salary.com reports the most popular functions performed by mothers equate to $113,586 per year1 in salary. Also, it states the stay-at-home spouse works a 94-hour week, performing, among other roles, the duties of housekeeper, cook, day care teacher, driver, and psychologist.

LWMNovDec2014small_Page_11Flexible, customizable choices.

The type of policy you select depends on your needs and budget. Term life insurance provides affordable coverage for several years. In contrast, permanent life insurance offers protection for your entire life (provided premiums are paid) and accumulates cash value tax-deferred. This cash value can be accessed (loans accrue interest and reduce the policy’s cash value and death benefit). Plus, riders, available with term and permanent life insurance, enable you to customize your policy to meet and grow with your changing needs.

The loss of a parent is an emotional hardship for a family; purchasing insurance coverage for a stay-at-home spouse can help ensure that it doesn’t become a financial hardship as well.

This educational, third-party article is provided as a courtesy by Valerie Kaiser, CFP®, Agent, (CA#0F39945) New York Life Insurance Company. To learn more about the information or topics discussed, please contact Valerie Kaiser, CFP® at 703-610-4073.

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