Why Life Insurance On Stay-At-Home Parents Is A Must Have

Most finance physician blogs say that a stay-at-home parent (SAHP) shouldn’t carry life insurance and that an attending physician’s high salary should be able to make up everything when you’re gone.

I disagree.

And I’ll tell you why:

It’s far, far, far more expensive than most people realize to make up EVERYTHING when a stay-at-home parent is gone.

If you are a stay-at-home parent and on the fence on buying some life insurance on you, let me give you reasons why you should get it.

Why Life Insurance On SAHPs Is A Must Have

1. You Rack Up Extraorbitant Hospital Bills

(Listen up, this is the biggest reason why you need life insurance on you. That’s why I list it first!)

Studies show that deaths between age 25 – 34 are usually due to cancer or extended illness.

What does that mean for your family?!

E X T R A O R B I T A N T  hospital bills!

ICU bills average $2000 a day, which far more than most physician incomes can manage. Will your treatment and care be covered by insurance? Maybe all of it, some of it, or not at all. You really can’t predict what kind of treatment or care you’ll need.

That’s why having life insurance makes making the decision to undergo expensive care and treatment a little easier. You could put your medical bills on a credit card or take out loans while you’re still alive.

Godwillingly, you will recover and get well!!!

But…if you die…then your loved ones can use the money from your life insurance to pay back the loans that you took out.

2. Your Work Has Monetary Value

Stay-at-home parents wear lots of hats. And all the hats they wear are unpaid.

And, if your DrSpouse would be like most widows/widowers, they really have no idea how much help they have to hire until you’re gone!

First off, they would need to hire not just ANY nanny, but a premium nanny — someone who can work weekends, nights, and holidays to fit their doctor schedule. A premium nanny is going to be very pricey.

Secondly, they would need to hire a patchwork of people to cover what you do for the family, from tutoring, chauffeuring, cooking, babysitting, accountant, snow removal, and financial planner.

All of these services cost a ton.

3. Your DrSpouse Needs Unpaid Time Off

It goes without saying: your death is going to turn your DrSpouse into a hot, hot, hot mess. They will need to take time off to process and make sense of their grief.

While I don’t know this pain, I have a friend who does. She was widowed about a year ago. She told me that the other day that she was driving and listening to a song that reminded her of her husband. And as she’s driving, her hands clutch the steering wheel and eyes water like onions. The worse is that she feels as if the world has moved on as if nothing has changed, yet EVERYTHING has for her.

It breaks my heart to see her like this. I really don’t know how much longer she will feel this raw pain…

But I have read a study that said that six months is an average amount of time before a bereaved person would want their old routine back, such as their jobs.

The problem is that most employers typically give employees only THREE days of paid leave to grieve.


A physician taking off even a couple of weeks of unpaid leave is going to be a huge blow to the family finances or to their practice.

If your life insurance will cover your DrSpouse’s leave of absence until they’re truly ready to go back to work, it’ll lighten the pressure they feel to go back. They would have the freedom to return when they feel ready and not because the bills are piling.

4. Your Dr Spouse Needs To Be Both “Mom & Dad”

There is a book by Lance Wubbels and Mac Anderson and the title is:

“To a Child, Love Is Spelled T-I-M-E”

As a mother of 3, I completely agree with that.

If you’re gone, your kids will be without you, which means their surviving parent will need to be truly present to make up for your absence. That means your DrSpouse will need to spend more YAMA (you and me alone) time with the kids. And to have that, they will need to adjust their work schedules.

Here are some examples:

  • Go part-time or take a sabbatical
  • Take off one day a week
  • Get rid of weekends and holiday shifts
  • Eliminate services and procedures they do so they are less burnt out and more present when at home

For this to happen, it’ll likely require a reduction in earnings.

Your life insurance could give them the freedom to live life on their term and not the hospital’s.

5. Your Dr Spouse Needs To Relocate

It’s possible your DrSpouse may want to relocate near family for various reasons. One reason may be that grandparents, aunts, uncles, and cousins — basically extensions of you — could give them a hand in raising the kids.

As we all know, moving could mean worsening your financial circumstances. For instance, your DrSpouse could be moving to a city with a higher cost of living. Or they may have to take a new position with less pay.

Your life insurance can make up the difference and make the moving decision based on it being the best for your family, not because it’s easier on the wallet.

Let’s Review

1. You rack up exorbitant hospital bills

2. Your Dr Spouse needs unpaid time off

3. Your work has monetary value

4. Your Dr Spouse needs to be both “mom & dad”

5. Your Dr Spouse needs to relocate

In Summary

I listed five reasons to get life insurance on the SAHP. Overall, I believe it’s far more expensive than most people realize to make up everything that a SAHP does.

So, if you and your DrSpouse are on the fence whether to buy it, just do it.

I’m a hugger. I’m hugging and supporting you, friend.

To your strong medical family,