Over the past sixty years our society has gone through tons of societal changes. People living longer lifespans, Women in the work world, and increased education. However with all of this change comes the need to reflect on the new need to assist in the coverage gaps that are being created for American Families.
Look at the situation that has happened with the increasing number of women working, which is a terrific thing. It is almost like we are just now finally allowing 50% of our population to lead our country. This is bringing profound changes on our society though as some men are becoming either the lower earner or are not working at all.
In one form of this, some Dad's are choosing to stay at home with the kids, and giving up their corporate job.
This is of course no different than when women did it, however what is unique about it, is that it is the reverse of the past situation. And this new trend needs to be addressed. When dads leave their corporate job they may be leaving a group life insurance plan behind.
Dads- Even Stay at Home Dads Need Term Life Insurance.
Why they need it,
How to Calculate it,
How to Buy it.
Why Stay at Home Dads Need Life Insurance:
Stay at home parents need life insurance, because, generally speaking, they provide a service. The services that they provide probably include, caring for the children, transporting the children, doing the laundry, shopping, cooking for meals, and donating their time.
How is donating their time a service? Well in some situations, such as schools and sports, lower fees go along with increased 'volunteer' time.
All of these services would theoretically need to be replaced if the Stay at Home Dad did not come home one day. And the best way to solve this potential long term problem, is likely a level term life insurance policy.
How to Calculate Stay at Home Dad Life Insurance Amounts:
First off, buying term for the stay at home parents is really not as simple as it could be for the working parent, such as the mom. However, it still needs to be done.
If the old rule of ten times earnings for the working spouse is being used for the working mom, then perhaps 60% of that amount might be OK with the non working spouse. But this method is extremely crude.
A better method would involve tallying up all of those services listed above: Day Care, Transportation, Laundry, Shopping, Cooking, Lack of Volunteer and add in Therapy Sessions (for the entire family, Travel Plans to go spend time with family, and possibly assisting to pay down the mortgage and even allowing the working spouse to quit her job. These numbers would need to be considered in the context of how many years that money would be needed for. So a family with younger children, even younger planned children, would need more coverage than a family with the oldest child who might be 12.
How Stay at Home Dads Can Buy Level Term Life Insurance:
The first rule for people in this situation is to spend a little bit of time understanding life insurance. Consider asking for an independent insurance agent that will be able to show you multiple quotes form different life insurers.
Get the coverage amount that you need, but that you can afford. Shoot for the term length until your youngest (or youngest planned) child is out of the house and on their own. Don't ever buy more life insurance than you can easily afford.
Lastly - Don't Ever Sign Any form of Life Insurance that you Don't Understand.
Scott W Johnson is the owner of
WholeVsTermLifeInsurance.com