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Its Easy to Forget about the Stay At Home Parents Life Insurance Needs
The other day while speaking with a client I was reminded about a best practice.

A client of mine was reviewing his life insurance with me on the phone.  A combination of what we were working on and what was provided to him through his employer.   Of course calculating life insurance needs is a tricky business.  As most insurance agents know - its tricky for all sorts of reasons.  Least of which is the fact that Life Insurance Needs rarely, if ever, stay the same year over year.

After completing his side of the needs analysis we turned to that of his wife.  Clients are often under the impression that a non working spouse neither Qualify for or need life Insurance.  I am not exactly sure why people think this.  Perhaps its a throwback to long ago when clients had to earn money to get life insurance?  Perhaps its the thinking that since someone is not producing an income stream that one is not needed to be replaced?  Its really hard to say.

Of course none of this is true.  A Stay At Home Dad needs life insurance just as much as the working mom.   Working parents, often, are befuddled and have no idea perhaps what the stay with the kid parents does on a daily basis.  However, generally I encourage them to to image how much it would cost to "hire" someone to fill just that role.  Consider a nanny or babysitter that drives, cooks, and cleans.  Likely you are to see that this employee is pretty expensive.

How much life insurance should the stay at home parent get?

That of course is not an easy answer.  Generally though I usually like to consider it a function of what the breadwinner needs combined with their available income.  Most insurance agents will also take into consideration future possible employment of the work from home spouse.

One thing is for certain with couples.  Both spouses usually need some form of term life insurance working at a corporation or being a stay at home parent.

Scott W Johnson- California 0H11625

Marindependent Insurance Services - Independent California Term Life Insurance
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