Life insurance
How much would your family need?
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A stay-at-home parent has no paycheck, but replacing their care costs real money. Enter local prices to see the yearly cost and the total over the years your family would need help.
Showing the worked example. Change any number to see your own result.
$18,600Yearly cost to replace the care
Replacing this parent's care would cost about $18,600 a year, or $186,000 over 10 years. Use the yearly figure as the income in a life insurance needs calculation.
| Year | Childcare | Household, transport and other |
|---|---|---|
| 1 | $15,000 | $3,600 |
| 2 | $15,450 | $3,708 |
| 3 | $15,914 | $3,819 |
| 4 | $16,391 | $3,934 |
| 5 | $16,883 | $4,052 |
| 6 | $17,389 | $4,173 |
| 7 | $17,911 | $4,299 |
| 8 | $18,448 | $4,428 |
| 9 | $19,002 | $4,560 |
| 10 | $19,572 | $4,697 |
| Year | Childcare | Household, transport and other | Total over all years | Running total |
|---|---|---|---|---|
| 1 | $15,000 | $3,600 | $18,600 | $18,600 |
| 2 | $15,450 | $3,708 | $19,158 | $37,758 |
| 3 | $15,914 | $3,819 | $19,733 | $57,491 |
| 4 | $16,391 | $3,934 | $20,325 | $77,816 |
| 5 | $16,883 | $4,052 | $20,935 | $98,751 |
| 6 | $17,389 | $4,173 | $21,562 | $120,313 |
| 7 | $17,911 | $4,299 | $22,210 | $142,523 |
| 8 | $18,448 | $4,428 | $22,876 | $165,399 |
| 9 | $19,002 | $4,560 | $23,562 | $188,961 |
| 10 | $19,572 | $4,697 | $24,269 | $213,230 |
| Total | $171,960 | $41,270 | $213,230 |
| Childcare per year | $15,000 |
|---|---|
| Household, transport and other help per year | $3,600 |
| Yearly cost to replace the care | $18,600 |
| Years of need | 10 years |
| Total over those years | $186,000 |
Save up to 3 versions of your inputs and compare them side by side.
Life insurance replaces money a family would lose. For a parent who stays home, the loss is not a paycheck but the care and work they do every day: childcare, school runs, meals, cleaning and running the household. If that parent died, the family would have to pay for much of it. This calculator turns that work into a yearly cost so you can size life insurance for the parent who does not earn a salary.
The NAIC suggests that a life insurance needs analysis should ask who depends on you and how their needs would be met. For a stay-at-home parent, the answer is usually: the children depend on them for care, and the working parent depends on them to be able to work.
The tool adds two kinds of costs:
Yearly cost = (weekly childcare × weeks) + 12 × (household + transport + meals + other)
Total = yearly cost × years of need
The calculator opens with this example for a family with a preschooler:
| Item | Calculation | Amount |
|---|---|---|
| Childcare | $300 a week × 50 weeks | $15,000 |
| Cleaning and household help | $200 × 12 | $2,400 |
| Transport | $100 × 12 | $1,200 |
| Yearly cost | $18,600 | |
| Years of need | 10 | |
| Total | $18,600 × 10 | $186,000 |
Those prices are illustrative. In a high-cost city, full-time care for an infant can cost far more than $300 a week, while in other areas it may cost less. That is why the calculator asks for your own local prices rather than using a national average.
Care costs usually fall once children start school. For a more accurate number, run the calculator twice:
Add the two totals together. Our guide to life insurance for a stay-at-home parent walks through a full example done this way.
The yearly figure is the “income” a stay-at-home parent provides in kind. To turn it into a life insurance amount:
| Factor | Effect on the result |
|---|---|
| Number and ages of children | Infants and toddlers cost the most to care for |
| Where you live | Childcare prices vary widely between and within states |
| Help from family | Grandparents who can help reduce paid care, but may not be able to for years |
| The working parent’s job | Long hours or travel may mean more paid help |
| Special needs | A child who needs extra care can raise costs and lengthen the need |
Once you know the yearly value, choose how long the cover should last with the term life length calculator, then compare term quotes for both parents.
Their value for insurance purposes is what it would cost to buy the care and work they provide, for as long as the family would need it. That depends heavily on local childcare prices and the children's ages.
Call local daycare centers, home providers or nanny agencies for current prices. The U.S. Department of Labor's National Database of Childcare Prices also shows county-level prices you can use to check whether a quote is typical.
You can add them under other help. A surviving parent may need to cut hours or turn down work, and that lost income is a real cost.
Full-time care for babies and toddlers usually costs the most. School-age children need less paid care, so you can run the calculator twice, once for the early years and once for school years, and add the totals.
It is the core of it. Add debts, final expenses and education goals, then subtract savings, as the DIME method does in our life insurance checker.
Not reliably. Survivor benefits depend on the person's own work record, and a parent who stayed home for years may not have enough recent credits. Leave them out unless you have checked with the Social Security Administration.
In most families with young children, yes. A policy on the earning parent pays nothing if the stay-at-home parent dies.
Educational information, not insurance, legal or financial advice. Coverlee does not sell insurance. How we calculate
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A stay-at-home parent earns no paycheck, but replacing their care costs real money. Here is how to put a number on it and size the cover.