9 Reasons Why Stay-at-Home Parents Need Life Insurance

9 Reasons Why Stay-at-Home Parents Need Life Insurance

You’re probably already aware that a parent with a job outside the house most likely needs life insurance to protect their loved ones in case something were to happen. But it’s not just breadwinners who need coverage—stay-at-home parents do, too. Here are nine reasons why.

1. To replace the value of their labor. Stay-at-home parents are caretakers, tutors, cooks, housekeepers, chauffeurs, and so much more 365 days a year. And all that work comes with a price tag: Salary.com reports that stay-at-home-parents contribute the equivalent of a $162,581 annual salary to their households. If the unthinkable were to happen, a surviving partner would be on the hook for a slew of new expenses that the stay-at-home parent previously shouldered. Term life insurance is generally a quick and affordable way to get a substantial amount of coverage like this for a specific period of time, such as 10 or 20 years—often until you pay of your mortgage or the kids are grown and gone.

2. To factor in the contributions of any future income. Many stay-at-home parents return to the workforce once their kids are older. Life insurance could help bridge the gap that their future earnings would have contributed to the household.

3. To pay off any debt. From student loans to credit card debt to an informal loan from a family member, there are lots of ways to owe money. Life insurance can help settle any debts left behind so they don’t create stress for grieving loved ones.

4. To cover funeral expenses. Would you believe that the average funeral runs between $7,000 and $10,000, according to parting.com? And that may not cover the cost of the burial, headstone and other expenses. Many families want to honor a loved one’s memory, but have trouble finding the funds to cover all the costs. Fortunately, the payout from a life insurance policy can help cover final wishes.

5. To leave a legacy. If a stay-at-home spouse has a passion for a place of worship, an alma mater, or another nonprofit organization, life insurance proceeds can be used to leave a meaningful charitable gift.

6. To boost savings. Permanent life insurance, which offers lifelong protection as long as you pay your premiums, may offer additional living benefits such as the ability to build cash value. This can be used in the future for any purpose you wish, from making a down payment on a house to paying for college tuition. Keep in mind, though, that withdrawing or borrowing funds will reduce your policy’s cash value and death benefit if not repaid.

7. To guarantee insurability. Your health can change in an instant. Getting a permanent life insurance policy when you’re young and healthy means you’ll have lifelong coverage. Then you won’t have to worry if later on you develop a health condition that would make it hard or even impossible to get life insurance.

8. To receive tax-free benefits. Life insurance is one of the few ways to leave loved ones money that is generally income-tax free.

9. To give loved ones peace of mind. Losing a parent and partner before their time is already hard enough without having to worry about unsettled debts, childcare costs, funeral bills, and other expenses.

As you can see, life insurance for stay-at-home parents is just as important as it is for parents who work outside the home. Schedule a time to talk with an insurance professional in your community to learn about your options and get coverage that fits your lifestyle and budget.

One of the Most Powerful Gifts You Can Give

On #GivingTuesday, we wanted to share a story that highlights how important your giving can be in changing a life.

Prentiss Bullard says one of the most important values his father instilled in him was education. “It was my dad’s dream for me to go to college, because I’m the first-generation student in my family,” says Prentiss. But Jan. 11, 2016, his life changed forever when his father was struck by a car and killed. Not only was his family grieving the loss of their beloved father, husband and son, Prentiss’ dreams of a college education came to a halt.

Watch his story here:

Thanks in part to a Life Lessons Scholarship from Life Happens, Prentiss has been able to get his educational dreams back on track. This program was established in 2005 to help students who are struggling to get an education because a parent or guardian died with little or no life insurance. Since its inception, more than 500 scholarships have been awarded, totaling more than a million dollars in scholarship money.

The effects of this giving are immediate and real: “I am so excited to attend college to pursue my degree in biomedical engineering and couldn’t do it without the generous scholarship from Life Happens,” says Prentiss. You can see the other students who were awarded scholarships this year here.

“These stories remind us all of the pivotal role life insurance plays in providing financial protection to families and loved ones,” says Marvin H. Feldman, CLU, ChFC, RFC, CEO of Life Happens. “We’re grateful to these students for sharing their experiences, and we hope their stories inspire others to protect their loved ones for the unexpected through adequate life insurance coverage.”

You can help change a life by your tax-free donation on #GivingTuesday to the Life Lessons Scholarship Program. And that’s one of the most powerful gifts that you can give: helping someone gain an education so that they can help themselves.

Free Guide to Long-Term Care and Tweetable Facts

Free Guide to Long-Term Care and Tweetable Facts

It’s Long-Term Care Insurance Awareness Month—and for good reason. Many people don’t know exactly what this type of insurance is or what kind of benefits it provides. But don’t worry if you fall into the “I don’t know” category, because as part of our mission as a nonprofit is to educate consumers about what this type of insurance is and what it can do for you and your loved ones.

Enter the “What You Need to Know About Long-Term Care Insurance” guide, which we have just updated with the latest info. You can access it here, where you can also download it and read it at your leisure.

The bottom line is that long-term care insurance (and products that combine this coverage with other types, like life insurance) gives you greater control about how, when and where you’d get care if you needed it—and how it gets paid for.

Below are some “tweetable” facts about long-term care insurance that you can just click to tweet and help spread the word.

Nearly 1/3 say long-term care expenses are a top financial concern, yet only 15% own long-term care insurance. Click To Tweet[Source: 2018 Insurance Barometer Study, Life Happens and LIMRA]

80% of long-term care at home is provided by unpaid caregivers, who spend on average 20 hours a week. Click To Tweet[Source: U.S. Dept. of Health & Human Services, 2017 longtermcare.gov]

57% say they personally need long-term care insurance, yet only 15% own it. Click To Tweet[Source: 2018 Insurance Barometer Study, Life Happens and LIMRA]

58% of long-term care caregivers, often unpaid, have intensive responsibilities like assisting with bathing or feeding. Click To Tweet[Source: U.S. Dept. of Health & Human Services, 2017 longtermcare.gov]

8% of people ages 40-50 have a disability that could require long-term care services. Click To Tweet[Source: U.S. Dept. of Health & Human Services, 2017 longtermcare.gov]

69% of people age 90+ have a disability. Click To Tweet[Source: U.S. Dept. of Health & Human Services, 2017 longtermcare.gov]

The cost of a home health aide is $135/day or $4,099 a month on average. Click To Tweet[Source: Genworth 2017 Cost of Care Survey]

The cost of an assisted living facility is $123/day or $3,750/month on average. Click To Tweet[Source: Genworth 2017 Cost of Care Survey]

Private room nursing home care is $267/day or $8,121/month on average. Click To Tweet[Source: Genworth 2017 Cost of Care Survey]

4 Things Life Insurance Is Not

4 Things Life Insurance Is Not

Are you confused about life insurance? I don’t blame you. When I first started writing about finances more than a decade ago, my understanding of life insurance was limited.

I knew about life insurance because it was offered through my employer, and I thought a $50,000 policy was a lot of money. I also recognized insurance company names from late-night TV commercials and the occasional bit of junk mail.

I understood “insurance” to be that stuff that you had to have for your car, your home, and your health. The “life” part was a big, blurry blob of “other.” If that’s how you’re feeling, here are a few tips that might help bring things into focus—by understanding the “nots.”

1. Life insurance through work is generally NOT enough.

Since learning this myself some years back, I’ve noticed that many people never explore life insurance past what is offered through their work. Policies through work are a great benefit to have, but are usually limited to one- or two-times your salary or a fixed amount like $50,000. Plus the coverage typically ends when your employment there does.

How far will an amount like that go when you consider what’s left behind for your loved ones: the loss of your income and mostly likely debts and bills. What about things like rent or mortgage, child-care and education costs?

An easy way to get a working idea of how much life insurance you need is with a Life Insurance Needs Calculator from a neutral source like www.lifehappens.org/howmuch.

2. Life insurance is NOT a luxury item.

Many people have not even considered buying life insurance because they’re convinced it’s a luxury. In a recent study by Life Happens and LIMRA, consumers thought the cost of a 20-year, $250,000 level term life insurance policy for a healthy 30-year-old was three times higher than it generally is. Younger people, in particular, overestimate the cost of a term policy by a factor of five.

If you took a guess at what that policy above would cost, what would you say? It comes out to about $13 or so a month for that policy. Definitely not a luxury—most of us spend more than that on a meal out.

3. Life insurance is NOT just about covering funeral expenses.

While covering funeral expenses is very important, and a major reason people purchase it, life insurance does so much more. If something happens to you, life insurance benefits can help replace lost income, or pay off a mortgage, or help ensure a college fund or safeguard a retirement nest egg.

The proceeds of a life insurance policy are generally tax free and can be used for anything your loved ones may need now and well into the future. Amazing, right?

4. Life insurance is NOT just for really healthy people.

Granted, life insurance is less expensive the younger and healthier you are, but don’t discount it just because you’re not in triathlete shape!

Many people don’t considering buying life insurance because they think they won’t qualify. But when certain health conditions, such as diabetes or high blood pressure, are under control with a doctor’s guidance or medication, it’s often possible to qualify. You may even be able to get coverage after a heart attack. Just know that it is probably best to work with an experienced insurance agent if you are concerned about a health issue and qualifying for coverage.

Now, if you’re a bit overwhelmed with this information and perhaps don’t know where to start, just know that a life insurance agent will sit down with you at no cost to go over your needs and help you get life insurance coverage to fit your budget. If you don’t have an agent or advisor, go here for suggestions on how to find one. You can also tap the Agent Locator there to find someone in your area.

Remember, the right agent or advisor can help you make sense of the confusion and get you on track for the financial future you want—with the protection your loved ones need.

Here’s What People Are Worrying About (or not) When It Comes to Finances

Here’s What People Are Worrying About (or not) When It Comes to Finances

Each year Life Happens and LIMRA join forces on the Insurance Barometer Study to get the latest and greatest information about what consumers are thinking when it comes to the financial concerns that are bothering them the most as well as what types of insurance they do or don’t have—and why! Take a look at some of the results and then just click to tweet them out!

The Financial Concern Index (FCI) dropped 9 points from 2017, suggesting consumers feel better about their economic situation and have a more positive financial outlook. #2018Barometer Click To Tweet
42% of consumers say they are very or extremely concerned about saving for a comfortable retirement; 20% say it’s their top financial concern. #2018Barometer Click To Tweet
Health coverage concerns consistently rank among consumers’ top financial worries. #2018Barometer Click To Tweet
Living expenses are the top financial concern for 13% of consumers. #2018Barometer Click To Tweet
Almost everyone (90%) believes a family’s primary wage earner needs life insurance. #2018Barometer Click To Tweet
35% of households would feel the financial impact within 1 month, if a primary wage earner died. #2018Barometer Click To Tweet
1 in 5 people who have life insurance say they don’t have enough. #2018Barometer Click To Tweet
2 in 5 Millennials say they wish their spouse or partner would buy more life insurance. #2018Barometer Click To Tweet
61% of people don’t buy life insurance or more of it because they say they have other financial priorities. #2018Barometer Click To Tweet
44% of Millennials overestimate the cost of life insurance by five times the actual amount. #2018Barometer Click To Tweet
Half of all consumers say they’re more likely to purchase life insurance if it’s priced without a physical exam. #2018Barometer Click To Tweet
“Fast and easy” is the benefit that most consumers (72%) like about simplified life insurance underwriting. #2018Barometer Click To Tweet
54% of Millennials are likely to ask social-media connections for recommendations on a financial professional. #2018Barometer Click To Tweet
67% of consumers say they wouldn’t do business with an advisor with an out-of-date website. #2018Barometer Click To Tweet
Half of consumers want a primary financial advisor: 37% have one, 14% are looking for one. #2018Barometer Click To Tweet

If you are looking for the complete study, you can access it here. If you have any questions, reach out to support@lifehappens.org.

Pin It on Pinterest