It’s not uncommon to come across families where their wealth protection strategies are largely focussed on just the main income earner. However, insuring a stay-at-home parent can be just as important as insuring the main income earner. Why? Because they provide valuable contributions to the family that would be costly to replace if they were to become unable to perform those duties due to illness, injury or death.

Some of the reasons include:

Childcare costs – A stay at home parent is often responsible for the care of children, which can be expensive to replace if the parent is no longer able to do so. Childcare costs quickly add up, and its important to have insurance in place to cover those costs if something were to happen. Allowing provisions to pay for this through insurance ensures the care of the children without the main income earner having to take time off work to do so if this is the preference of the family.

Household tasks – A stay-at-home parent may be responsible for various household tasks such as cooking, cleaning, shopping, laundry etc. These tasks would need to be outsourced if they were unable to perform them. The cost to hire help would also add up. Often, we include provisions to help with this via extra income support, making it easy and affordable to get help.

Lost income – Even though a stay-at-home parent may not receive a paycheck, their contributions to the household have great value. If they were to become unable to add this value, the main income earner may need to take time off work to care for the children or perform the tasks that the stay-at-home parent was responsible for, resulting in a loss of income.

Through the use of appropriate insurance, we can allow for various amounts of income support over a specified period of time, providing the flexibility that the family needs to continue to operate however they desire – whether that’s the ability to hire help at home, or if they want the flexibility to reduce their working hours.

In short, insuring a stay-at-home parent is important because they provide valuable contributions to the family that would be costly to replace if something were to happen to them. Having the appropriate insurances in place, that are designed specifically to their own objectives and needs can undoubtedly help to safeguard a family’s financial future in the event of the unexpected.

For those reading this thinking they need to review their family’s personal insurances – don’t delay please reach out HERE for a conversation.

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