Should stay-at-home partners have life insurance cover?
Traditionally, women filled the role of the ‘stay-at-home’ mum, looking after the kids and the housework, whilst their husband or partner went to work to earn an income to support the family.
In the 21st Century, the person filling the role of homemaker could be either partner with ‘stay-at-home’ dads becoming more common.
The value of unpaid work
In 1997 the value of unpaid work – 91 per cent of it unpaid household work – was about $261 billion, equivalent to about 48 per cent of Australia’s gross domestic product (GDP), according to the Australian Bureau of Statistics (ABS).
This estimate was arrived at by looking at how much it would cost to pay someone to do the housework, look after the kids, do the shopping and cooking, and other domestic chores.
What is Life insurance?
Life insurance is an essential component of financial planning for anybody’s future. It’s designed to provide a set lump sum payment at the time of the policyholder’s death. This can be used to pay off the mortgage, meet financial obligations such as school fees or clear credit card debts, take care of funeral arrangements and pay off medical bills.
A financial safeguard
There are not many families whose financial circumstances are such that they could continue their former lifestyle unabated in the wake of an unexpected death or serious illness – of either partner.
Nothing can ever make up for the sudden loss of a loved one. But having adequate Life insurance coverage in place for both the main income earner, and partner who stays at home, can help take the financial burden away while you deal with the loss.
In the event the main income earner were to die or become seriously ill, the payout from their Life cover could avoid potentially devastating consequences, such as the loss of the family home. It could also provide a financial cushion to assist while the stay-at-home partner locates paid employment, or while other avenues of income are considered and put in place.
If the stay-at-home partner were to die or become seriously ill, the lump sum can be used to cover the cost to hire someone to look after the home and children avoiding the need for the main incomer earner to have to juggle taking care of the family as well as continuing to work. The need for Life insurance coverage for the stay-at-home partner is often underestimated by couples, and the consequences can be devastating.
NobleOak’s Life insurance calculator can help you determine what types of Life insurance policies are appropriate for your family, and the level of cover you require.
Please note that the information we provide is not advice but general information only.