It’s often thought that only the main breadwinner in a household needs life insurance, and whilst that may be the case for some people, it is important not to under-value the contribution of stay at home parents to the household. Here are a few reasons why stay at home parents should consider life insurance as well as their partner.
Replacing the value of unpaid work in the home.
Being a stay at home parent is a full time job and by no means an easy task. You are a chef, child-minder, cleaner, teacher and take on countless other roles at the drop of a hat, 24/7. While you may not be bringing in any money the average value of a parent’s unpaid work stands at £25,568, so the cost of replacing the work you do would make a huge impact on your family’s budget.
Cover funeral costs
The average funeral cost now sits at £9,204 and has increased by 57% over the last 11 years. This is obviously a huge sum that could keep rising as the years pass, so a life insurance payout could be used to cover these costs.
Pay off any debt
Whether you have a mortgage to cover or other outstanding debts, leaving behind a lump sum to cover them can save your loved ones from inheriting the payment responsibilities. Even if your mortgage is shared with your partner, why not relieve them of a major financial obligation if you have the chance.
Leave a legacy
A legacy can mean very different things to different people. Some may prefer to leave money to pay for children’s tuition or weddings, while some prefer to leave a charitable donation or give back to your community or old university. Whatever you want your legacy to be, life insurance could help you achieve it.
Tax free gift
If you put your life insurance into a trust (which TopQuote do for free for our policies!) it is not subject to inheritance tax and cannot be included in your allowance. This allows you to leave the full amount to your loved ones without having to worry about losing a large amount to the tax man.
Make life easier for those left behind
Your family’s happiness is one of the most important things in the world and you don’t need a specific reason to make their lives easier. Why not leave behind a lump sum to help relieve your loved ones’ financial stress and allow them to focus on the better parts of life.