Insuring the Stay-at-Home Parent: Is it a Good Idea?

Most of the time when a client in the Niles, IL area is looking for a life insurance policy from Bob Korvas Agency Inc.they are concerned about replacing the income of the working parent.  However, as many families are discovering, it can make better financial sense to have one parent stay at home while the kids are in elementary school. But what happens when the spouse that cares for the kids during the day passes away? You might be surprised.

The Cost of Two Working Parents Continues to Rise

Daycare can cost $12,000 to $10,000 per year. Once you have more than one child, that expense can easily eclipse the earnings of the second parent. Should both parents have high-powered positions, the live-in nanny will require a salary and benefits. How is it affordable? It isn’t, and that is why many families are returning to the one working parent model for a time.

What Happens if the Caretaker isn’t there?

If the stay-at-home parent suddenly passes away, it now becomes essential that the remaining parent have some kind of daycare set up.  Where will that extra $20,000 per year come from? For how many years? A term life insurance policy for the stay-at-home spouse could leave enough cash for the family to work out a new future that maintains the accustomed standard of living and care.

Make Saving for College a Priority

Perhaps you might be able to pay for the daycare, but at the cost of eliminating the college savings plan. Wouldn’t it be better to have both? That extra life insurance policy could guarantee that even with one parent your kids can be set up for future success.

Talk to your agent at Bob Korvas Agency Inc. about the benefits of adding a life insurance policy for both parents in your Niles, IL working home today.