Provided by Pam Prine

When most people think about life insurance, they think about replacing the take-home pay earned by the family’s primary breadwinner should he/she die. Yet it could be just as important to insure a stay-at-home parent.

The issue is one of valuation: how do you set a dollar figure on the contributions that a stay-at-home parent makes to a family? Start by looking at the functions he or she provides: cooking, cleaning, childcare, shopping, laundry, paying bills. How much would it cost to pay someone to provide those same services?

For a newly single parent of two children, the price of continuing to work could mean spending as much as $40,000 or more a year on childcare and household services. If you can’t imagine finding that kind of additional cash flow, covering your spouse or partner with a life insurance policy to pay those expenses for as many years as needed makes sense.

You have two choices: you can take out a separate policy on your spouse that names you as the beneficiary, or you can add a spouse rider to your own policy. The advantage of a rider is that it can be cheaper than securing a separate policy for the stay-at-home parent.

On the other hand, if your spouse dies after you do, the rider typically doesn’t pay a death benefit to your spouse’s beneficiary. In addition, your spouse will have no access to cash value accumulation since the policy and cash values are owned by you. And, with some insurance companies, you can’t secure as much coverage on your spouse in a rider as you can in a separate policy.

If there are other reasons for your spouse’s life to be insured than simply replacing his/her homemaking services — like designating different beneficiaries or meeting estate-planning objectives — then a separate policy might be the better choice.

As with all life insurance decisions, the best way to insure a stay-at-home spouse differs for every family. For help assessing which spousal coverage decision is best for you, please call.

Pam Prine may be reached at (623) 299-9710 or

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities offered through J.W. Cole Financial, Inc. Member FINRA/SIPC. Advisory services through J.W. Cole Advisors, Inc. (“JWCA”). Keystone Capital Management Group, LLC and JWC/JWCA are unaffiliated entities.   

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