The loss of a primary breadwinner can, of course, be devastating for the surviving members of a family.
What are some of the expenses a stay-at-home parent or a homemaker would incur on their own if the primary breadwinner weren’t in the picture?
- If you have children, then their tuition – school & college
- Any mortgage you have to repay
- Other insurance premiums – home & auto, for instance
- Daily expenses
These are just a handful of costs that your partner – a stay-at-home parent or homemaker might have to bear on their own after your passing.
How much life insurance coverage is enough for your partner to sustain themselves?
Just think of it as replacing the income the primary breadwinner brings home for the foreseeable future. This means it should be able to at least cover major expenses like college tuition, repay any loans, pay off mortgage, and so on.
What type of life insurance policy should you go for?
There a quite a few options that all the top-rated carriers offer these days. The two stand-out ones would be term life insurance and decreasing term insurance. Term life insurance provides coverage for a fixed period of time – 10-20-30 years, usually, and provides a lump sum payout after your passing. Decreasing term life insurance, on the other hand, offers monthly payouts to the beneficiary, which acts as an income replacement.
On the other hand, we all know that a stay-at-home parent or a homemaker is an unpaid “job” on its own. Without them, you would need to hire someone to take care of all the responsibilities of a home, including childcare and other domestic tasks. That’s why you should seriously consider the idea of buying a comprehensive life insurance policy in their name.
Who should you buy life insurance from?
Always be sure of certain elements like coverage amount, type of insurance, and length of term before buying a policy so you can make an informed choice given the wide variety of options you have today. With Bubble, you can browse through a number of different top-rated insurance carriers in the country and the various insurance products they have to offer you at competitive prices. It’s pretty easy and simple to buy it online without the paperwork and in some cases no medical tests or in-person meetings.