Why stay at home parents need life insurance

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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As a stay at home parent you may write off the need to get life insurance since you are not the one bringing the bacon home, but you do. Parents can take out a life insurance policy to ensure that their children are financially taken care of until their old enough to leave home. Here are five reasons why a stay at home parent needs life insurance cover.

1. It will cover your family when you are no longer around

Being a stay at home parent often requires that you be an all-rounder. You are a caretaker, a tutor, your kids’ chauffeur and a cook throughout the year. Life insurance can protect stay at home parents that find themselves out of action to carry out their important part in the household. This can also be financially helpful to your partner should they decide to cut their work and help out at home. It can create a financial safety net even when you are no longer around.

2. Take better care of your debt

Having to worry about unsettled debts can be strenuous for you and your partner. Once your life insurance benefits claim is paid out your family will be able to take care of any outstanding debt, bills, and everyday living expenses. Therefore, you can rest assured knowing that your partner and children are taken care of even when you are no longer around to do so.

3. Be prepared for the unexpected

Life has its twist and turns that even a fully cautious stay at home parent cannot prepare for. Life insurance can protect your loved ones against financial loss should a stay at home parent pass on, becomes disabled, has a critical illness, or sustains an injury. Depending on the policy that you choose you will be able to cover your medical expense and hire help to assist you around the home. There are life insurance policies that can also cover you for rehabilitation expenses.

4. It can help you cover funeral expenses

Losing a stay at home parent can be an emotionally and financially tough pill to swallow. According to research by Real Insurance, 38% of Australian families do not have any life cover. Only a third of parents were confident that they are sufficiently covered for unforeseen circumstance. Having a policy can ensure that when you pass on your loved ones will be able to bury you with dignity, and they will also be adequately covered financially to take care of other expenses.

5. Can take care of your children's educational expenses

Being able to further your children's education is possible with a life insurance. Even if your children are home schooled you can rest assured knowing that should anything happen to you they will be taken care of. Life insurance policies are designed to keep up with the inflation rate so by the time the policy is paid out they will be adequately covered for their college expenses.

Having a life insurance policy not only will provide your loved ones with financial stability, but it can also ensure that they have a future that is weighed by debt. Always keep in mind to speak to an insurer to find a policy that will adequately cover your needs.