One often overlooked aspect of parenting is obtaining life insurance, which is especially true in the event of one working spouse and one at-home spouse. More specifically and in some ways, more importantly is obtaining life insurance for the at home spouse independently. A misconception adding to this conundrum is that it is oft assumed there is no “cost” related to the at-home child caring spouse. However, the simple economics of looking at the cost ratio of paying for childcare versus an at-home parents is very revealing. In other words, look at the per hour cost of child care not including the other skills involved such as cooking, cleaning and laundry, plus the 24/7 nature of child rearing. Those looking for life insurance should review some simple questions before picking a plan, such as what type of plan they need (number of children financially dependent); length of policy (long enough to get the youngest to college age); cost or how much of the policy to buy (50-80% of the working spouse income) and lifestyle.
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