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As a home parent, you too need life insurance



The common perception is that only people who work need life insurance. This is incorrect.
Death is never an easy matter to talk about; however, such an event can drain the family emotionally. Added to this, there is the fear that the remaining family members may not be able to survive financially, especially with the average debt to average income being 255% in the financial period 2016 to 2017 (http://www.medianet.com.au/releases/145748/). However, the role of the stay-at-home parent should not be minimised. Although such a person does not receive a weekly pay slip, his or her role has value. By having life insurance, the stay-at-home parent can ensure that family members are taken care off in the event of death or even disability.

Why life insurance policy could be right for a stay-at-home parent

The role of the stay-at-home parent is normally dismissed, simply because he or she receives no income or pay slip. However, if that parent is unable to function, for example, after becoming disabled, the household will then need to cover the costs of what that parent covered, whether day care, cleaning, cooking, and driving children to school. In addition, there will be the cost of looking after him- or herself. This may be unaffordable to the other parent.

It is not solely in the case of disability that life insurance can offer some relief. Should death occur, or parents experience critical illness or trauma, this may mean that they have to have help with their everyday activities. As such, life insurance becomes part of financial planning in the event that something like this would occur.  

How to work out the value of a stay-at-home parent

To decide how much cover is needed, use an online life-insurance calculator. For instance, if you are contemplating a 20-year policy, with a lump sum payout of $500 000, a 35-year-old woman in good health will pay around $19 each month.

What to look out for when evaluating life insurance

With various life insurance policies available, by using a comparison service like savvy, you can easily filter through the maze to find a product that will work for you and your budget.
One aspect to take note of with term life policies, for instance, is level premiums. Level premiums imply that monthly costs will be pegged, and you can stay within your budget.


Besides spending a fixed amount monthly, make sure it’s spent wisely. Your life-insurance cover should be relevant to your circumstances. If it includes malaria cover, for instance, and you live in Southern Australia, this will be unnecessary expense. 
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