How Much Life Insurance Does a Stay-at-Home Parent Need?

A stay-at-home parent plays a crucial role in keeping a household running, and while they may not earn a paycheck, the services they provide—childcare, cleaning, cooking, and transportation—have significant financial value. If something were to happen to them, the cost of replacing those responsibilities could put a serious strain on the family’s budget. That’s why Dave Ramsey and his team recommend life insurance for stay-at-home parents.

When determining how much coverage is needed, a general guideline is between $250,000 and $400,000 in a 15- to 20-year term policy. The right amount and duration depend on the ages of the children. If they’re young, opting for a longer term and higher coverage amount makes sense to ensure financial security through their most dependent years. If they’re older and more independent, a shorter term with a lower coverage amount can be a more affordable option.