As a stay-at-home parent, you are the unsung hero of your family. You juggle endless responsibilities while managing to keep your house in order and your children happy. But what happens when something tragic happens and you can no longer provide for your family? Protecting yourself and your loved ones is essential.
As a result of the pandemic, people are more aware than ever before about protecting themselves and their families. In addition to this new awareness has come added housework and childcare responsibilities.
It is often a misconception among clients and some advisers that there’s a need to protect just the income earner. In fact, women and men feel their caring responsibilities have increased since lockdown and are more willing to discuss their protection options.
Protection for stay-at-home parents raises some questions:
- Who would help with the children if that parent was sick or died?
- Would the surviving parent need to take a prolonged period off work to look after their children or their sick partner?
It’s natural to assume that the breadwinner will just carry on paying the bills. But they may need to reduce their working commitments or give up work completely. This all impacts their earnings.
The role of a stay-at-home parent may not come with an official salary but for example, the cost of having a mother in the home, even though difficult to calculate, is estimated at £30K each year. This includes household day-to-day activities supporting the family, such as childcare, household chores, and ferrying the kids around. There would be a severe financial impact on the family if these could not be covered should they be unable to do them.
When a family’s budget is tight, clients often focus on protecting the working parent. But it makes more sense to give both parents protection. Protection may help decrease anxiety felt when worrying about losing income due to sickness or death.
The stay-at-home parent is an integral part of a family’s financial security, but many don’t realize just how valuable they are. It’s important to have a conversation about what type of protection they need. Ask yourself what would happen if you were not there.
Advisers today have an obligation to discuss protection with all clients. It is not enough for us to only protect the earner; client needs have changed. There are many options available that offer security for the family.
Although it may be difficult to think about, having a conversation with your family about your wishes in the event of an unexpected death or injury is crucial. Planning ahead can provide peace of mind for everyone involved and ensure that your loved ones are taken care of in the way you would want.
Contact us today to find out how having the right protection will benefit you and your family. We can help make sure that your family is prepared for anything life throws their way.
This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
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