Since 1989, the number of men who stay at home and take on the role of primary caregiver has nearly doubled to 2 million, according to the U.S. Census Survey. This Sunday we celebrate Father’s Day. It’s a time to reflect on what our dads mean to us. Take the time to consider their financial value as a stay-at-home parent. Too many families don’t purchase life insurance for stay-at-home fathers, but if tragedy strikes it can change everything. Here are some tips for choosing a life insurance plan.
Research Life Insurance Policies
For most people, term life insurance is the most affordable option. It pays out a death benefit to their beneficiaries if they die within the term of their policy agreement. These policies are typically easier to get approved than whole life or permanent life insurance policies, which build value over time. Purchasing life insurance can be very expensive, so it’s important that you research policies that offer the best options.
Figure Out How Much Life Insurance You Need
When estimating, consider how much it would cost for your family members to take care of all the things dad does if he isn’t around. Salary.com, in its 16th Annual Salary Survey, attempted to calculate the salary of a stay-at-home parent. On average, they found that a stay-at-home parent spends 92 hours of work each week and would make an annual salary of $143,102 if employed. The general rule for life insurance is to have 10 times the income your family would need if you passes away.
Get quotes from several life insurance companies online, without offering any sensitive information, such as your Social Security number. Quality companies should only require anonymous information to provide a quote. Before you decide which company you’d like to purchase life insurance from, spend time researching them to make sure they are financially sound.
In order to make sure the term life insurance policy will fit your family’s needs and you will be able to afford the premiums, it’s a good idea to talk to a financial professional about life insurance. Don’t be afraid to get help navigating this often complex decision.