In a household where one partner is the breadwinner and the other at home fulfilling all the domestic duties, the focus from a life insurance perspective is almost always on the working partner. But is this wise?
Our natural inclination is to insure the life, health and income of the breadwinner; the reasoning is that, should the breadwinner at any stage be unable to earn a living, the family will suffer financially. This reasoning is spot on and of the utmost importance.
But, often the stay-at-home mom is overlooked when it comes to insurance – a big mistake. The family fails to consider insuring the life and health of the partner at home.
Mom’s many hats
The work of a stay-at-home mom does not normally get measured in monetary value but, if she is suddenly taken out of the equation, the impact can also be financially significant.
Many moms still choose the career path of stay-at-home mom. In some cases mom will stay at home for a few years when the children are still very small but, in some families, women give up their working lives completely.
Consider the qualifying criteria for a stay-at-home mom: she is a highly skilled driver, nurse, chef, housekeeper, teacher, secretary, project planner, negotiator, judge and jury, budget specialist, coordinator and nurturer – the list goes on and on.
What if something happens to mom?
If mom falls ill or is taken away unexpectedly, a person will have to be hired to fulfil the important function she has been fulfilling at home – and that could cost a great deal.
Bear in mind that those costs will quite possibly be compounded by other expenses arising from her illness or death, so the financial ramifications are quite significant.
What do the professionals say?
According to life insurance professionals, if a stay-at-home mom is diagnosed with a dread disease such as cancer, for instance, she’ll have to be hospitalised and possibly for extended periods. Even when not in hospital, she may not be strong enough to do everything that has to be done. The working partner may have to pay for the services of a domestic worker, a cook, a driver, just to name a few, to keep the household running and the children organised in their daily lives.
However, if the stay-at-home mom is covered by a dread disease policy, the working partner could qualify for a lump-sum payout – money that could be the lifeline of a family during such a traumatic time.
In the case of a woman dying at a relatively young age, life insurance will be paid out as a lump sum and could then be applied to new costs that arise.
Supporting the kids
It is of utmost importance that children are sufficiently supported so they can resume their lives as per usual in the wake of the loss of their mother. This will help them cope with the trauma that they will have to process. It is crucial not to be caught in the midst of an unfortunate financial situation. One less thing to worry about.
And that’s why moms should consider insuring their own lives and health, not necessarily as cover for income-generation that may be lost, but so she can rest assured that her family is taken care of. In this way she continues caring for them even if she can’t physically be there.
It goes without saying that everybody hopes that tragedy of this sort won’t hit our families but we know that there are no guarantees.