Can you put a price tag on the duties that your spouse or partner performs while you are working?  Have you felt the impact when your spouse or partner is sick or unable to perform these duties?  Can you imagine this scenario becoming the norm?

Cooking, laundry, cleaning, picking up the kids from school, and helping them with homework are just some of the duties of a dedicated homemaker. It may not be possible to list or place a dollar value on all of the work a homemaker performs, but if he or she were to die unexpectedly, the enormous emotional, physical, and financial void would quickly become clear.

Life insurance is typically purchased as income replacement for the family breadwinners to ensure that the survivors have financial security should tragedy strike. If the family includes young children and one parent is a homemaker who cares for them, the need to insure the family’s sole income earner is obvious. Few, however, consider the financial disaster that could befall a family if the stay-at-home parent dies. A homemaker may not earn a salary, but the duties he or she performs are essential to a family. The surviving parent may struggle to shoulder the burden or to pay someone to assume those responsibilities in the event of tragedy.

Initially, family and friends can assist the survivors, but as the reality of life without the support of an essential family member becomes clear, so do the costs. The surviving parent may need to hire somebody to do household chores and provide childcare, which can last for many years depending on the age of the children, in addition to the one-time funeral and medical expenses.

Term life insurance is an ideal solution for homemakers who need inexpensive coverage until their children are financially independent. For a few dollars a month, a homemaker may be able to buy a 10- to 30-year policy that will last until his or her children are adults. Rather than serving as income replacement, the proceeds help ensure a family can regain some financial stability after a death.

*The material provided in this article is for informational purposes only. We do not provide legal, tax or accounting advice. Please contact your own advisers for legal, tax and accounting advice.