Being a stay-at-home parent is a full-time job. As a teacher, counsellor, chef, housekeeper and more, they are contributing tens of thousands of dollars of unpaid work to your family every year.
If your family includes a non-working parent, it’s worth thinking about how you would cover their household contributions – because even though they don’t bring home a pay cheque, if they suffer an illness, injury or pass away it could be devastating financially as well as emotionally. Life and Trauma insurance are well worth considering for stay-at-home parents.
Here are three things you might need cover for if something happens to the stay-at-home parent in your family.
1. To replace the value of their work.
If something happens to a stay-at-home parent, your family may need to make new arrangements for child-care, transport, housekeeping and more, which may mean additional, unplanned-for expenses.
If you’re looking at getting life or income insurance, make sure you’ve considered how you would manage financially if something happened to either parent, including the stay-at-home parent. Life insurance can’t replace a lost loved one, but it will provide your family with some financial security to shoulder the expense of replacing their contribution to the household.
2. To cover mortgage and other expenses.
If something happens the non-working parent, your family’s expenses may go up – to pay for the work they normally do – or your income might go down, if you need to take time off work to help around the house or care for the stay-at-home parent.
You might think that if they are not earning an income, they may not need or be able to get income protection insurance but, even as a non-working parent, they might be eligible for mortgage and living cover to help protect your family home if something happens to them.
If the stay-at-home parent were to pass away, life insurance cover can help your family settle debts, boost savings, or pay for future expenses like your children’s education.
3. To cover additional costs.
If they get injured, become ill or pass away, your family could face major unbudgeted costs. These could range from paying for private or unfunded medical treatment, to modifying your home if they suffer an injury that leaves them with a disability, or covering the cost of their funeral. Without cover on the non-working parent, it may be challenging to meet those expenses.
Trauma insurance can offer some protection, paying out a lump sum if they suffer one of the specified serious illnesses and injuries that are covered on these types of policies.
Life insurance can help pay expenses such as a funeral costs – Life insurance will often pay out an early sum to help cover immediate expenses, or if they are diagnosed with a terminal illness, you might be able to access your life insurance early.
Even though they may not be earning a salary, stay-at-home-parents add significant financial value to their families. If you’re thinking about taking out life insurance, it’s worth considering what cover you need for both parents to avoid any financial hardship if something goes wrong.
Getting life insurance when both parents are young and healthy not only provides your family with financial certainty but gives you peace of mind that both parents will be covered if any future medical issues arise.
There are lots of life insurance options, and it can be helpful to get personalised advice from us to figure out what you and your family need.
(Source: Asteron Life)