Life insurance for stay-at-home parents? Why it’s worth considering
They say being a mum is the hardest job in the world. And they’re probably right. On the average day, you take on the role of a cook, nurse, teacher, nanny, PA, housekeeper, cleaner — and that’s all before the school drop off! With such an important role, have you considered how your family would cope if they lost you? It’s not something any of us like to dwell on, but if the worst happened, it’s good to know that you could offer your loved ones some protection.
Why mums need life insurance
When it comes to life insurance, many families think about replacing the household income first. After all, this money pays the bills and keeps the roof over your family’s head. But forgetting about life insurance for mum or dad who stays at home to look after the kids full time, can be a big mistake.
If you’re a stay-at-home parent and don’t earn a salary, it’s easy to think you don’t need life insurance. But the fact is, if something happened to you, your partner may have to reduce their working hours to look after your children, or pay someone else to do all the roles you do — and that’s not cheap.
Ever wondered what your ‘mum salary’ would be?
Have you ever thought about how much it might cost to employ someone to do everything you do? The driving, cleaning, pack-lunch making, algebra homework - and the constant Lego tidying!
To give you an idea, we’ve created a tool that calculates your ‘mum salary’. It’s a fun way to tot up all the work you do and put a price on it. But it also raises a more serious point. A stay-at-home mum or dad makes a huge contribution, and any family would be affected both practically and financially if you passed away unexpectedly.
So, why not give the calculator a try? You may be surprised just how much you do – and how much your so-called salary should be. If only we really could get paid that amount!
With this figure in mind, it’s also easy to see why life insurance for mums is really worth considering. Of course, replacing a parent is impossible, but a payout could help to cover some of your family’s day-to-day costs and take some of the financial stress out of a terrible situation.
Term insurance to protect your young family
You may already have life insurance for the breadwinner in your family. But if you can afford it, it might be worth considering life insurance for both parents, especially when your children are young. With term insurance you can choose the length of time you’d like to be covered, so if you died within that time, the policy would pay out.
This type of life insurance can make sense for parents with a young family, as it means you can get cover during the time your little ones rely on you most. For example, you could choose a 10, 15 or even 20-year term that covers you until your children can stand on their own two feet.
Critical illness cover
Many people who buy life insurance also choose to take out critical illness cover at the same time. Critical illness insurance pays out a tax-free lump sum if you had a stroke or heart attack, or if you were diagnosed with a serious illness like cancer.
Because they’re worth it
As any parent knows, it’s hard to think about the unthinkable. But taking out life insurance means there will be some much-needed support for your family if the worst happened. Plus, once it’s sorted, you can forget all about it and get on with enjoying being a mum (and a teacher, cook, driver and PA!).