Stay at home parent

Why you might need to consider life insurance too...

Being a stay-at-home parent is a full-time gig. You’re a multi-tasking extraordinaire combining the roles of teacher, counsellor, chef, housekeeper and peace maker! And all of this adds up – you are likely contributing tens of thousands of dollars of unpaid work to your family every year. So, what would happen if all that stopped suddenly and unexpectedly? If your family includes a parent who isn’t in paid employment, it’s worth thinking about how you would cover their significant household contributions – because even though they don’t bring home a pay cheque, if they suffer an illness, injury or pass away it would not only be devastating emotionally, but possibly financially too.  Life Cover is well worth considering for parents at home. Here are three ways life insurance could help if something happens to the stay-at-home parent in your family.

1. To replace the value of their work

If something happens to the stay-at-home parent, your family may need to make new arrangements for child-care, transport, housekeeping and more, which may mean additional, unplanned-for expenses. If you’re looking at getting life insurance, make sure you’ve considered how you would manage financially if something happened to either parent, including the stay-at-home parent. Life insurance can’t replace a lost loved one, but it can provide your family with some financial security to cover part of the household contributions.

2. To cover mortgage and other expenses

If something happens to the stay-at-home parent, your family’s expenses may increase due to the need for additional childcare, transportation, and housekeeping services, or your income might decrease if you need to take time off work to assist at home. If the stay-at-home parent were to pass away, life insurance cover can help your family settle debts, boost savings, or pay for future expenses like your children’s education.

3. To cover additional costs

If the stay-at-home parent becomes terminally ill or passes away, your family could face significant unplanned expenses, such as private medical treatment or funeral costs. Without cover on the stay-at-home parent, it may be challenging to meet those expenses. Life insurance can help pay expenses such as a funeral and if a policyholder is diagnosed with a terminal illness, you might be able to access the life insurance early.

Consider speaking with an independent insurance advisor to ensure your family is adequately protected, regardless of a parent’s employment status.

AALIFE.CO.NZ 

The information in this article has been compiled from various sources and is intended to be factual information only. Full details of AA Life Insurance policy terms and conditions are available from AALife.co.nz. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice and we cannot accept any responsibility or liability in connection with your use of or reliance on this article.