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.