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The importance of life insurance for stay-at-home parents

You might think life insurance is only important for a family's breadwinner. However, parents who stay at home to care for their families provide significant financial value. When planning for your family's future, consider life insurance for members who don't work outside of the home, as well as for those who do.

Plan for the costs of childcare

Childcare expenses can be overwhelming, with costs soaring up to $36,0001 per year per child. Whether it’s daycare, after-school programs, or hiring a nanny, these expenses can quickly accumulate.

By securing a life insurance policy, you recognize the contributions of the stay-at-home parent and help ensure that if something unexpected were to happen, your family’s needs will be taken care of.

Cover the financial value of household contributions

A stay-at-home parent’s responsibilities extend beyond childcare. Consider how they manage household finances, meal prep, and housekeeping tasks, and you’ll understand why their contributions are invaluable.

In fact, when quantifying the various roles they fulfill, the annual value of these responsibilities can amount to an astonishing $133,440.2 Protecting the financial value of these contributions is just as crucial as safeguarding a working spouse’s income.

The value of life insurance for a stay-at-home parent

When considering the type of life insurance coverage you need, Fixed Indexed Universal Life (FIUL) products are a strong financial tool that can serve multiple purposes, just like the stay-at-home parent. FIUL products provide coverage in the case of an unexpected death, but also may include other benefits, such as living benefits, or coverage for things such as critical, chronic or terminal illness.

These benefits can help cover the costs that stack up if a stay-at-home parent becomes ill. They also can offer opportunities for retirement savings outside an employer plan, with cash accumulation in an FIUL policy supplementing traditional retirement savings.

Talk with a financial and insurance professional to see how life insurance could help you and your family. 2024 Cost of Care Report

2Kissell, C. (2023, May 8). Mother’s day index 2023: Mom’s salary rises more.

Policy approval is determined by a review of medical and personal history on the application and may be subject to additional underwriting requirements at the discretion of F&G. Review Fidelity & Guaranty Life Insurance Company Underwriting Guidelines for additional details.

For applicants who are not U.S. citizens or not permanent resident cardholders, the maximum issue face amount for exam-free underwriting is $300,000. In Puerto Rico, exam-free underwriting is available for applicants age 0-45 who are applying for less than $150,000.

The maximum amount of coverage available for a non-working spouse is $1,000,000 per primary insured not to exceed wage earner’s inforce coverage amount. If the coverage amount sought for non-working spouse is greater than $1,000,000, underwriting should be consulted for individual consideration.

Policies issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA. Guarantees are based on the claims-paying ability of the issuing insurer, Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

Fidelity & Guaranty Life Insurance Company offers a diverse portfolio of universal life insurance policies and optional additional features. Before purchasing, consider your financial situation and alternatives available to you.

Subject to state availability. Certain restrictions may apply.

Optional provisions and riders have limitations, restrictions and additional charges.

Please review the policy for premium details. If premiums are not paid, as scheduled, your policy may terminate or may increase the likelihood that the surrender value will be insufficient to cover the monthly mortality costs and expense charges unless additional premium is paid.

Surrenders, withdrawals and loans will reduce available death benefit and may be subject to surrender charges. Surrenders and withdrawals beyond basis may be taxable income and subject to penalties if taken prior to age 59 ½. Excessive and unpaid loans will reduce policy values and may cause the policy to lapse. In order to receive favorable tax treatments on distributions made during the lifetime of the insured (including loans), a life insurance policy must satisfy a 7-pay premium limitation during the first seven policy years. A new 7-year limitation will be imposed after certain policy changes. Failure to satisfy this limitation would cause your policy to be considered a Modified Endowment Contract (MEC).

Issuance of the life insurance policy depends in part on answers to health questions in the application.

Information provided regarding tax or estate planning should not be considered tax or legal advice. Consult your own tax professional or attorney regarding your unique situation.

No bank guarantee. Not FDIC/NCUA/NCUSIF insured. May lose value if surrendered early.