Insurance for the most important job in the world - The mom

We don't usually think of the work a housewife does as having a monetary value but, if it's suddenly taken away, the impact is significant from a financial perspective.
"Although it's more common in today's world for women to have careers, there are still many who choose to stay at home and look after children."

"Sometimes, that's the case for a few years when the children are still very small but, in some families, women give up their working lives completely," says Michelle Human, Legal Marketing Specialist at Liberty.

"If you consider the numerous roles that a woman will play in her career as housewife, it involves quite a range - she's a driver, a nurse, a cook, a housekeeper, a teacher, a secretary and above all a caregiver."

"Some career women return to work and are required to pay various individuals to fulfil these roles - but at quite a price. So in some cases, it may not be financially viable for the mother to return to her old position."

"In a household where the husband is the breadwinner and the wife is at home to look after things domestically, the focus from a life insurance perspective is almost always on the husband."

"The view is that should the breadwinner at any stage be unable to earn a living, the family will suffer financially and so it is therefore crucial to insure the life, health and income of that breadwinner," which Michelle says is quite correct.

"But, what is not entirely correct is the failure of the breadwinner to consider insuring the life and health of his partner."

"If she falls ill or dies unexpectedly, the important function she has been playing in her domestic role will have to be done by someone else."

"And that could cost a great deal - bear in mind that those costs will quite possibly be compounded by other expenses arising from her illness or death, so the financial ramifications are not insignificant."

Michelle explains that, "A stay at home mom could be diagnosed with a dreaded disease such as cancer, for instance, and have to be hospitalised for extended periods."

"Even when not in hospital, she may not be strong enough to do everything that has to be done."

"You may have to pay for the services of a domestic worker and a driver, among others, to keep the household running and the children organised in their usual lives."

"This unexpected additional financial liability you may not be prepared for."

However, if covered by a dread disease policy, the partner could qualify for a lump-sum pay out - this would be money that could come in very handy in this sort of situation.

"In the case of a woman dying at a relatively young age, life insurance will provide funds in the same way for the new costs that arise."

"Letting your children resume their usual lives in the wake of the loss of their mother is really important in terms of their ability to handle the trauma they will face, so the financial situation is particularly important."

"That's why you should consider insuring the life of a stay at home mom, not necessarily as cover for income-generation that may be lost, but to pay for the various tasks she would have been performing."

We all hope that tragedy of this sort won't hit our families but we know that there are no guarantees.

Source: ITInews