By Seema Bangera
Executive Manager, Life Claims and Customer Solutions
Being a stay-at-home parent is a full-time gig. 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 check, 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 parents at home.
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 your contribution to the household..
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 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.
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.
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 insurances, 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.
The information in this article has been compiled from various sources and is intended to be factual information only. Full details of policy terms and conditions are available from Asteron Life Limited or your financial adviser. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Asteron Life Limited and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.