Why Life Insurance Matters for Stay-at-Home Wives and Mothers

When we think about life insurance, the first person that usually comes to mind is the main breadwinner.

After all, if the person earning the household income were no longer there, the financial consequences for the family could be serious.

But there is another contribution to family life that is often overlooked simply because it does not appear on a payslip.

The work of a stay-at-home wife or mother has real financial value.

She may not earn a salary — but imagine what she does every day

Think about an ordinary week in a busy household.

There may be children to look after, meals to prepare, washing and cleaning to do, shopping, school runs, appointments, homework, household administration and countless other tasks that quietly keep family life moving.

Individually, each responsibility may not seem extraordinary.

Put them all together, however, and they represent an enormous amount of time, work and responsibility.

And if the person doing those things were suddenly no longer there, many families would quickly discover just how valuable that contribution really was.

What would it cost to replace everything she does?

No amount of money could ever replace a wife or mother.

That is not what life insurance is about.

Life insurance is about helping the family deal with the financial consequences of losing someone they depend upon.

A surviving partner might suddenly need to pay for services that were previously provided within the household, such as:

• Childcare or after-school care

• Cleaning and domestic help

• Meal preparation

• Transport and school runs

• Additional help during school holidays

• Assistance managing the home and family routine

There may also be a need for the surviving partner to reduce working hours or take additional time away from work in order to care for the children.

All of this can have a significant financial impact.

Life insurance isn't only about replacing income

This is perhaps the biggest misconception.

Life insurance is often discussed in terms of replacing someone's salary. But protecting a family is about more than replacing income.

It is also about protecting the contribution each person makes to the household.

A parent who stays at home may make it possible for the other partner to work full time, develop a career or run a business. That contribution may never appear in the family's bank account, but it can still be fundamental to the family's financial stability.

That is why life insurance should not automatically be considered only for the higher earner.

How much cover should a stay-at-home parent consider?

There is no single figure that suits every family.

The appropriate amount will depend on circumstances such as the age and number of children, existing savings, debts, mortgage commitments, the family's monthly expenditure and the amount of paid help that might be required.

The important thing is to ask a simple question:

If she were no longer here tomorrow, what additional financial responsibilities would the family face?

That conversation can provide a much more realistic picture of how much protection may be appropriate.

Protecting the person who helps hold the family together

We insure our homes, our cars and many of the things we value.

Yet sometimes one of the most important people in the household remains financially unprotected simply because she does not receive a salary.

A stay-at-home wife or mother may not be the family's breadwinner.

But she may be one of the people the family depends upon most.

Life insurance cannot replace her.

It can, however, help provide financial security for the people she leaves behind and give the family one less thing to worry about at an already difficult time.

Talk to us

At Premier Services Ltd, we can help you consider your family's circumstances and the level of life insurance protection that may be appropriate for you.

Because her work has value — and protecting your family means protecting everyone they depend upon.

Contact Premier Services Ltd to find out more about Life Insurance and family protection.