3 minute readLife
Usually yes. The household would need to pay for childcare, transportation, household management, and possibly reduce the working parent's hours. Replacing that labor is a real, ongoing expense that does not disappear because it never appeared on a pay stub.
What you need to know
Estimating the number
Price local childcare and household help for the years remaining until the youngest child is independent.
Term matches the need
The need typically ends when children reach independence, which fits a 15- to 20-year term.
Coverage for both parents
Insuring only the earner leaves the family exposed to the more disruptive of the two losses.
Common mistakes
- Relying only on employer coverage, which is small and not portable.
- Waiting to buy, when age and health only make pricing worse.
- Insuring the earner and not the parent doing unpaid household work.
- Leaving outdated beneficiaries on the policy.
- Buying a term length that expires before the need does.
When to talk to an agent
Talk to an agent when someone becomes financially dependent on you, when you take on a mortgage, when your health or income changes, or when you want a real number instead of a guess.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.