The diverse role of a stay-at-home parent
If you think about it, a stay-at-home parent is many things: childminder, teacher, nurse, cook, cleaner, laundrette, taxi service, gardener, dog walker, accountant, counsellor, personal shopper……the list goes on and on.
But if you’re a stay-at-home mum or dad, do you know your worth, not just emotionally but financially?
Your average workday might look something like this:
- 3.5 hours cleaning, tidying and washing up
- 2 hours preparing and cooking food
- 1-hour cleaning, hanging up and ironing clothes
- 1-hour personal shopper
- 30 mins gardening
- 30 mins taxi service (to and from school)
- 30 mins helping the kids with homework
- On call for the kids 24 hours a day, (7 days a week!)
Have you ever wondered what your salary might be if you were paid for all the hours you put in at home?
According to an article published in the Mirror, using research from Bidvine, a stay-at-home mum is worth £80,000 a year and should be “on the same salary level as GPs, pilots and lawyers.” – (source: www.mirror.co.uk)
SunLife suggests the financial risk to a family from the death of a stay-at-home mum is estimated at £29,812 a year.
Whichever figures you believe, the importance and value of a stay-at-home parent is very clear.
You can work out your salary for yourself using this great tool from SunLife – www.sunlife.co.uk
I don’t need life insurance. I don’t work
If you’re a stay-at-home parent and do not earn a salary, it’s easy to think that you don’t need life insurance cover.
You might think that life insurance is just to protect against the loss of the breadwinner, whether that be mum or dad?
After all, they provide the funds to pay the mortgage, household bills and living costs each month. Right?
A stay-at-home parent makes a massive, often underestimated contribution and we believe should be protected 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 and run the home?
Could you rely on grandparents? According to Legal & General, “65% of working parents stated that they could only afford to work due to the grandparents’ help with childcare”. – (source: www.legalandgeneral.com)
If not, could you afford full-time childcare, a cleaner, a gardener?
Or would your spouse need to cut down on their work hours to help fulfil these roles?
But then how would this impact on their salary, on which everyone relies financially?
According to research from The Money Charity, the average cost of raising a child, from birth until the age of 21, is £30.23 a day.
That’s £11,034 a year, or a mind-boggling £231,713 over 21 years, (per child).
Take just one of these costs, (admittedly a big one), childcare.
The Money Advice Service report that the average cost of full-time childcare in 2017 was £223.36 a week and £277.84 per week for those based in London.
That’s £11,615 or £14,448 a year alone. For 1 child under 2 years of age. What if you have 2, 3 or more children?
Why do so few stay-at-home mums’ have life insurance?
Only one-third of stay-at-home mothers are covered by life insurance and according to Legal & General, almost half of parents in the UK don’t have any life insurance protection.
Let’s face it, no one likes to consider the thought of dying and what this would mean for our children and loved ones.
According to a 2016 study by Legal & General the most common reason stay-at-home parents don’t get life cover is it is ‘too expensive‘. Followed by ‘it is too complicated‘ or ‘I am too young to think about dying’.
We find that our customers often have either phone insurance and/or pet insurance in place, (which can demand similar premiums), but no life insurance to protect their loved ones.
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 a month.
For the price of a packet of crisps a day, or a couple of Starbucks coffees a week, you and your family could be comprehensively covered, should the worst happen.
Generally speaking, the younger you are when taking out a policy, the less you pay.
Another affordable option is family income benefit, (or FIB). Here, instead of a single lump sum pay out, your policy would pay a monthly tax-free income.
Great for day-to-day family budgeting, whilst avoiding the need to invest large sums, which could incur fees.
We all know you can never replace a mum or a dad. Whether you work full-time or are a stay-at-home parent, the role you play is invaluable.
However, having adequate protection in place and receiving a lump sum pay out could one day help you financially, at a time when you are suffering emotionally.
If you’re one of the millions of parents in the UK without life insurance, why not take out cover today?
The best way to secure the right policy, at the cheapest price, is to compare quotes.
We’re a life insurance broker, who can save you time and money by searching the market on your behalf. What’s more, there’s no cost for our service.
 https://www.familyandchildcaretrust.org/childcare-survey-2017 + https://www.moneyadviceservice.org.uk/en/articles/childcare-costs