Does a stay-at-home parent need life insurance since he or she technically doesn’t contribute to the household income? The answer is yes.
Why? Because, should the unthinkable happen to the stay-at-home parent, the other parent – the primary or sole breadwinner of your household – would have to continue working to support the family and also pay other expenses, such as childcare, to replace your at-home contributions to the family.
The work contribution of a stay-at-home parent should never be discounted when determining life insurance coverage. It’s also not a question of “if” a stay-at-home parent should have as much, or more, or less, life insurance coverage as a working parent. Instead, determine the need for life insurance for a stay-at-home parent based on his or her contributions to your household.