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Q: How Much Life Insurance Does A Stay At Home Parent Need?

2012 January 23

Dave Ramsey recommends that a stay at home parent carry life insurance since they provide important and valuable services in the household such as childcare, housekeeping, food preparation, transportation, etc. If they were to prematurely die then the household would experience an increase in expenses that can be significant. Typically an amount between $250,000 to 400,000 is the range he recommends. You can purchase a 15-20 year guaranteed level term plan that reflects the age of your children. If your children are younger then the longer period and higher amount would apply.  If your children are older and more self-dependent then a shorter term period, which will save you money, can be considered.