Why Both Parents Need Life Insurance

Life Insurance Isn’t Just for the Breadwinner

When we think about life insurance, we often focus on the primary wage earner—the person whose income supports the family. But what about the non-breadwinner? Whether they’re a stay-at-home parent, a part-time worker, or someone caring for the household, their role is just as critical to the family’s well-being. While they may not bring in a traditional paycheck, their contributions hold significant financial value.

This Life Insurance Awareness Month, let’s explore why it’s essential for both breadwinners and non-breadwinners to have life insurance coverage.

1. The Financial Value of a Stay-at-Home Parent

A stay-at-home parent does much more than take care of the kids—they’re often the ones responsible for cooking, cleaning, running errands, and managing the household. These are jobs that would cost a lot if the family had to pay for outside help.

In fact, if a stay-at-home parent were to pass away unexpectedly, the family would need to hire help to replace these services. According to the 2023 Salary.com’s annual report, the financial value of a stay-at-home parent’s work is equivalent to over $190,000 a year. Without life insurance, the family might struggle to afford childcare, housekeeping, and other essential services.

Life insurance for the non-breadwinner ensures the family can afford these services in the event of their passing, allowing the breadwinner to continue working and maintain the household.

2. Covering Final Expenses

The loss of any family member comes with emotional and financial stress. Funeral costs alone can range from $7,000 to $12,000, and there may be additional medical bills or other final expenses. Even if the non-breadwinner isn’t generating income, life insurance can help cover these costs, relieving the family of the financial burden during an already difficult time.

Without life insurance, these expenses may have to come out of savings or retirement funds, potentially derailing the family’s long-term financial plans.

3. Supporting the Breadwinner’s Ability to Work

The non-breadwinner often provides critical support that allows the breadwinner to focus on their career. Whether it’s managing household duties, caring for children, or handling the day-to-day needs of the family, their contributions allow the breadwinner to go to work without distraction.

If the non-breadwinner were to pass away, the breadwinner would likely need to adjust their work schedule or even reduce their hours to manage the household or arrange for childcare. This could result in a significant loss of income. Having life insurance in place for the non-breadwinner helps cover the costs of these adjustments, ensuring the breadwinner can continue working and providing for the family without major disruptions.

4. Securing Your Children’s Future

For families with children, both parents—regardless of their income-earning role—play a vital role in providing a stable future. If a non-breadwinner passes away, the remaining spouse may need to take time off work to handle the emotional impact and adjust to new responsibilities. This could impact the family’s ability to save for the future, including important expenses like college tuition.

Life insurance can act as a financial cushion, giving the breadwinner the flexibility to take time off work, adjust to new responsibilities, and maintain the family's long-term goals without sacrificing their children's future.

5. Life Insurance Isn't Just About Income Replacement

It’s easy to think of life insurance as something only the main income earner needs, but life insurance serves more than just income replacement. It provides financial stability during life’s most uncertain moments. The loss of any family member affects the entire household, emotionally and financially. Life insurance for both the breadwinner and non-breadwinner helps protect against the unexpected, ensuring that the family can adjust without financial strain.

6. Peace of Mind for the Whole Family

Life insurance is about ensuring your family’s well-being, no matter who you are or what role you play. While the breadwinner may generate income, the non-breadwinner contributes in countless other ways that support the household. Having life insurance for both partners ensures that no matter what happens, the family has the resources they need to continue without severe financial hardship.

Final Thoughts

The contributions of the non-breadwinner are just as vital to the family’s financial health as those of the breadwinner. From childcare and household management to providing emotional support, their role is invaluable. That’s why life insurance for both partners is crucial—it’s about protecting the family as a whole, ensuring that everyone is covered, no matter what.

As Life Insurance Awareness Month comes to a close, take time to review your family’s insurance needs. If the non-breadwinner in your family doesn’t have life insurance, consider the value they bring to the household and the financial impact of their absence. Securing coverage for both partners is the best way to protect your family’s future.