It goes without saying that your life has changed now that you are a parent. Your work will be cut out for you for the next 18 years. But you have to be prepared for the unexpected and the what if's in life. They may be hard to talk about or even think about but something that should not be overlooked. Making sure that your family has the proper coverage should be the first thing on your list before you pack your hospital bag.
There are special financial considerations that stay-at-home parents need to consider. One of the first things on the list was obtaining life insurance. Not only for the working parent but also the stay-at-home parent. This is something that we actually just started the process for in our house. With everything that happened with our newest addition and the fact that my husband had recently taken a new job we were not covered for life insurance. The thought of losing my husband is terrible but if you look into the future you would see that a financial hardship would soon follow.With the rising costs in our country followed by the lack of jobs being thrown back into the workplace would be difficult. Covering funeral costs along with daycare costs up front could put you into debt faster than you think.
Most parents don't think to insure the stay-at-home parent because they aren't making any income whilst being at home. But in your absence childcare would have to be provided. Along with funeral costs that your spouse may not be able to cover. Life insurance is something that needs to change during different points in your life. When you start a family a strong policy is needed to cover some of the what ifs that I've already stated.
Educate yourself on the different types of Life insurance is available. Here are the two that most stay-at-home parents are aware of:
- Employer Coverage – This is the coverage that is offered by your (or significant others) employer. It is a group plan that you do not need to submit a health screen for (easier for smokers to get this policy). You can set your beneficiaries along with additional coverage above what the basic plan offers. The draw back to these plans is that you can't take them with you if you switch jobs. Which brings me to the next option.
- Term / Permanent Life Insurance – This coverage you can get at all different levels of payouts. You can customize them better for your family to make sure that you leave no stone unturned. You will generally have to submit a heath screening as well with these plans.
We have had various coverages, when we had employer coverage my husband made sure we always had 3 times what he would make in a year. So if he were to die I would be able to cover things like our mortgage payment, bills and childcare costs until I could get on my feet. The policy on myself wouldn't be quite that high but it would cover help with the children.
As I said, it's not the most glorious topic to think about but something every parent needs to take very seriously. Make sure you are insured so that your children or significant other can be taken care of. It's hard enough losing someone without being brought down by the staggering cost associated with someone dying.
Information contributed by Genworth Financial