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

Dave Ramsey recommends that a stay-at-home parent carry life insurance since they provide valuable services in the household. Childcare, housekeeping, food preparation, transportation, etc. all come at a cost. If they were to die, the household would experience a significant increase in expenses. As far as the amount of coverage they need, $250-400,000 is typically a safe bet, for a 15-20-year guaranteed level term. The exact number of years you will need is dependent upon the ages of your children. If they are younger, the longer period and higher amount would apply. If they’re older and more self-sufficient, a shorter term period, which comes at a lower cost, can be considered.