Are you responsible for the house duties of the family? Find income protection, life insurance or trauma insurance.
The death of a family member does not just bring along emotional difficulties, but also brings with it various financial hardships. Unless you are extremely wealthy, you will face monetary problems if an earning member in your household dies. This is why most Australians ensure that they have adequate life insurance cover for all the earning members of the family.
Stay-at-home family members need cover
Have you ever stopped to consider that a 'homemaker' (someone who performs home duties instead of traditional jobs that earn money) needs to be insured too? If the main household worker becomes injured, ill or unexpectedly passes away there's not only an emotional strain but also an expensive cost to take care of.
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Why do I need to consider personal insurance if stay-at-home?
You may not get paid for what they do in a household, but if you were paid for the duties you take care of, your salary would run into thousands of dollars each year. Similarly, if were to pass away or become incapable of working due to a serious trauma or injury, there would a be cost of finding someone to perform your home duties.
What are some duties that a stay-at-home family member performs?
Here is a look at the many roles that a typical homemaker plays within a family scenario and what you will need to take on should the homemaker become incapable of working:
- Resident chef: A stay home parent is largely responsible for cooking all the meals for her spouse and kids. While the spouse may help to cook the occasional meal, the bulk of the cooking work is done by the homemaker. Hence, if they are unable to cook because of an injury, the other partner will have to do all the cooking. This means they may need to take time off work, which may not always be possible. In that case, the family will need to hire a part time cook till such time that the stay home parent gets back on their feet. The last option is of course that of dining out. All these options unfortunately cost a great deal of money. Whether the working partner stays home from work, hires a cook, or orders in – all this entails spending money that otherwise was not getting spent.
- Child care specialist: There is no better person to take care of kids in the house than a stay home parent. From feeding the kids, bathing them, teaching them, helping them with homework, dropping them to school, and taking them for game practice – a homemaker regularly does all these jobs. Therefore, if they were rendered incapable of looking after the kids, the other parent would have to assume this enormous responsibility. Very often it is seen that taking care of kids is a full time job and thus the other parent may even have to take some months off from work till the homemaker gets back on her feet. If getting leave from work is not a possibility, then you are looking at hiring a nanny for the kids or putting them in day care. All this again costs a considerable sum of money.
- Maintaining the house: A homemaker does many chores on a daily basis so as to keep the house functional. These include cleaning the house, vacuuming it, washing dishes and clothes, shopping for home essentials and groceries, and also keeping the house safe against intruders. All these duties would have to be done by the other parent should the stay home parent was not in a position to do them.
As is evident from the above, there are many things that a homemaker is responsible for in the house. If the homemaker were to meet with a severe accident that results in trauma or a serious injury, and if they cannot fulfill all their responsibilities, then the burden falls on the surviving parent. In such a situation, they are looking at a huge financial outgo in terms of hiring people to do the jobs that the homemaker did. This is why it is important to have Life and Trauma Insurance for homemakers.
How do I find the right income protection, life insurance and trauma insurance?
Follow these tips to find the right policy if you're a homemaker:
- Firstly don't accept the first policy you come across just because it's cheap. You must shop around and compare one policy against another, especially the conditions and what they'll pay out on. Shopping around is a lot easier today with insurance companies well represented online.
- Don't neglect covering your children as well as yourself. Most policies these days will include your children without any extra cost. There can be a considerable cost involved if your child suffers a critical illness, or injury, and subsequently dies.
- Undertake regular reviews of all your insurances. It's important that your insurances be kept up to date to better reflect your homemaker situation. For this reason regular reviews can ensure your family always has full protection.
- Make sure you have the right policies. For instance a trauma insurance policy that includes malaria when you live in southern Australia can be seen as a waste of money as it'll be unlikely you'll ever make a claim for such an illness. All your policies should be relevant to your current circumstances.
- Ensure your partner is adequately insured. It's a good thing to have yourself insured so that financial hardship can be avoided should you die or become critically ill but at the same time you should make certain your partner is suitably insured as well as if he or she was to suffer a similar fate it will be you who will have to carry the financial burden alone.
Questions that homemakers have when it comes to life and trauma insurance
Who is the homemaker?
When referring to the word homemaker it's usually accepted that you're referring to women although this definition is becoming more and more blurred as time goes on with many men today choosing to remain home to care for the housekeeping and children while mum goes to work to bring in the family income. Many couples make this decision based on who's capable of earning the higher salary. Some couples share homemaker duties by alternating responsibilities with one working part of the week while the other stays home.
Should I just get insurance for the income earner?
Whichever way you choose to manage your own household, there is one thing you shouldn't leave unattended and that is having sufficient life and trauma insurance cover over both partners in case one should be taken from the scene either by unexpected death or through suffering a serious illness or injury. Life insurance pays a lump sum benefit should one or other of the partners die and trauma insurance pays a lump sum benefit should the insured person be diagnosed with a critical illness such as cancer, heart attack or stroke etc.
Is trauma insurance paid out as a lump sum or as income protection?
With life and trauma insurance cover in place, you will be protected in case the homemaker cannot work due to a serious illness, injury or if they pass away. The insurance policy will typically be paid out as a lump sum or as income protection depending on the policy type. The benefits of the policy can thus be used to complete all the tasks and chores that were the sole responsibility of the homemaker. The insurance policy will cover you till such time that the homemaker is absolutely alright and is once again able to resume all her household duties.