BOTH parents should have the appropriate amount of life insurance, even if one parent is not working. Although there may not be loss of income, expenses will greatly increase should something happen to the stay-at-home parent. Both parents should thoroughly discuss this topic, even as morbid as it seems. For instance, would the surviving parent want to only work part-time in order to be home more? What about daycare, babysitting expenses, as well as a housekeeper? These expenses must be factored in, and the stay-at-home parent should be insured for this amount.