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  • AZ Insurance Team

Why Stay-at-Home Parents Need Life Insurance

Updated: Aug 4, 2020

Life insurance very common for people who have children and do not want to risk leaving them with nothing in the case of an unexpected death. Many people assume that the parent with a job is the only one that needs coverage because they are the ones that are bringing in the money every month to support their family. What people don't understand is that stay-at-home parents also need coverage as well and they are just as valuable. Here are some reasons why.

The first is that people underestimate the value of time and effort that stay-at-home parents put into taking care of the children every day. Typically if you are a parent taking care of the kids you are helping them with school, cooking, cleaning, driving them to and from school and extracurricular activities. This is a lot more work than people think. states that stay-at-home parents contribute an equivalent of $162,581 annual salary to their households. If something were to happen to the stay-at-home mom or dad, how would the remaining parent afford to support that loss?

Another reason why it is important that stay-at-home parents have life insurance is to cover any debt from student loans, credit cards, etc. and to cover funeral costs. Sadly the funeral costs are the start of many expenses that need to be taken care especially when an unexpected death occurs.

There are two main types of life insurance. Term life insurance and permanent life insurance. For many parents term life insurance is the best plan for them. Term life insurance covers you for a set amount of years, usually 10, 20 or 30 years depending on your policy which is time for you to pay off your mortgage and raise your kids until they are financially independent.

Permanent life insurance is another option that gives you lifelong coverage. There are two primary types of permanent life insurance, whole life and universal life. Whole life insurance offers coverage for the full lifetime of the insured and its savings can grow at a guaranteed rate. Universal life insurance also offers a savings element in addition to the death benefit, but offers different types of premium structures based on market performance.

No one wants their child growing up without mom or dad, but it is every parents responsibility to make sure that in the case of an unexpected death that their kids will be taken care of financially.

As you can see, it is just as important for stay-at-home parents have a life insurance policy as it is for a parent working outside of their home. If you have any questions feel free to call us at 480.535.5709 or visit

AZ Insurance Team


*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*


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