Stay at home mums and dads need life insurance too

Life insurance, stay at home parent, family finanjces, Julie Hutchison, Standard Life

Stay at home mums and dads need life insurance too. Pic credit below.

Here’s another fantastic guest post from Julie Hutchison of Standard Life’s moneyplusblog. This time Julie tackles the thorny issue of stay at home parents and life insurance. It rasies a very important question; what exactly would happen if the kids’ main carer were to pass away uninsured? How would the partner left behind continue to make the household run

It’s nice when things are taken care of for you, isn’t it?

When you’re employed, your employer may offer a benefits package which has some features to help your loved ones. A so-called ‘death-in-service’ lump sum payment may be a key financial benefit in the background, which pays out a figure calculated as a multiple of your salary eg. four times.

If something happens to you, that payment could really help out your family.

Roll the clock forward, and you’re now a stay-at-home parent, without the support of a workplace benefits package.

If you haven’t put a life insurance policy in place, and something happens to you, who is going to pay for the cost of childcare?

In the whirlwind of a newly arrived baby, life insurance for you as the stay-at-home parent may not be top of your list of things to think about. But it’s really worth making time to review how this could protect your family, and enable your partner to continue working if the worst happens, with childcare costs covered by the lump sum from the insurance.

It’s simple to arrange online, and you can speak to an expert to get more help if you prefer. The ‘term’ of cover, meaning the years the insurance policy lasts, could be until your youngster is aged 18, for example. There’s more information about life insurance on the Money Advice Service website.

With some forward planning and life insurance, you can lighten the financial burden on your family if the worst happens – your partner will have enough to get through without worrying about childcare bills and how to juggle their work with caring for your children.

Julie is a regular blogger at moneyplusblog.

Laws and tax rules may change in the future. This information is based on our understanding at May 2015.

Disclosure: This post was produced in association with Standard Life. To see my disclosure policy, please follow this link.

Image sourced from Pixabay.com. Credit: Geralt. Reproduced under Creative Commons Agreement. Follow disclosure link for more information.

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5 Comments

  1. May 16, 2015 / 6:24 am

    I must sort this – Thanks for the reminder. Thank you for sharing it in #bigfatlinky

    • John Adams
      Author
      May 16, 2015 / 9:01 am

      Lfe insurance is easy to overlook AL. Very improtant to get it sorted though. Thanks for commenting.

  2. May 21, 2015 / 9:33 am

    Useful reminder. I’m a bit gutted with life insurance as so many won’t take me on without high rate risks due to my health problems. I have however found a slight way around it and have pre planned something instead. Thanks for linking up with us on the #bigfatlinky hope to see you there this week

    • John Adams
      Author
      May 21, 2015 / 10:07 am

      You are, Martyn, clearly a clever guy to have worked out a little ruse.

  3. Julie Hutchison
    May 27, 2015 / 10:15 am

    Hi Al and Martyn – glad this post was useful – if you have any other money themes on your mind, let me know, and I may be able to blog on them to help.
    kind regards
    Julie