Based on a blog post article by award-winning life insurance brokers, Reassured.
The financial importance of a stay-at-home parent
A stay-at-home parent is many things to the family; childminder, teacher, chef, doctor, cleaner, chauffeur, gardener, dog-walker, financial advisor, counsellor, personal shopper……
But, if you’re a stay-at-home parent, do you and your partner fully appreciate your financial worth?
Think about what an average day might look like for you:
- 3 hours cleaning, tidying and washing up
- 2 hours preparing and cooking food
- 1.5 hours cleaning and ironing clothes
- 1.5 hours food shopping
- 30 mins taxi service
- 30 mins helping the kids with school work
- On call 24 hours a day, 7 days a week, 52 weeks a year.
Not that any of us do it for the money, but have you ever wondered what your salary might be if you were to be paid for all the hours you put in?
According to a great article published in the Mirror, drawing on research from Bidvine, a stay-at-home mum could be worth as much as £80,000 a year.
I don’t need life cover, because I don’t have a job
If you’re a stay-at-home parent and don’t earn a salary, it’s easy to think that you don’t need life cover.
You might think that life insurance is just to protect against the loss of the family breadwinner? After all, they provide the money to pay the mortgage, household bills and living costs each month. Right?
A stay-at-home parent makes an enormous, often underestimated contribution and should be protected with life insurance too.
Any family would be severely impacted, both practically and financially, if you were no longer around.
In the event of your death or a serious illness, who would step in and help support your family?
Could you rely on grandparents? If not, could you afford full-time childcare, a cleaner, a gardener, taxis?
Or would your spouse need to cut down on their work hours to help fulfil these roles?
According to research from The Money Charity, the average cost of raising a child, from birth until 21 years, is £30.23 a day.
That’s £11,034 a year, or a mind-boggling £231,713 over 21 years (per child).
The Money Advice Service suggests the average cost of full-time childcare in 2017 was £223.36 a week, or £277.84 per week for those based in London.
That equates to £11,615 or £14,448 a year, for 1 child under 2 years. What if you have 2, 3 or more children?
So why do so few stay-at-home parents have a life insurance policy?
Just one in three stay-at-home mums are covered by life insurance and, according to Legal & General, almost half of all UK parents don’t have any life insurance protection.
A study by Legal & General published in 2016 identified the most common reason stay-at-home parents don’t take out life insurance is because it is ‘too expensive‘. Followed by ‘it is too complicated‘, then ‘I am too young to think about dying’.
Not as expensive as you may think
In reality, you can set up life insurance to protect your family, until your children are independent, for just a few pounds each month.
If you arrange cover while you’re still young, fit and healthy you can secure very low monthly premiums.
For the price of a chocolate bar a day, or a trip to the pub a week, your family could be comprehensively covered, should the worst happen.
Whether you work full-time or are a stay-at-home parent, the role you play is invaluable.
However, having adequate life cover in place and receiving a sizeable lump sum payout could one day help you financially, at a time when your family are suffering.
If you’re one of the millions of parents in the UK without any life cover, why not be proactive and take out a policy today?
Freeing you up to get on with more important things in life, like enjoying your family and friends, safe in the knowledge they’re protected.