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When considering life insurance, the focus often falls on the primary breadwinner. After all, their income provides financial stability for the family. But what about the contributions of a stay-at-home parent?
While they may not earn a salary, their role in keeping the household running—from childcare to managing daily tasks—is invaluable.
Without their support, the family would face emotional challenges and significant financial strain, as replacing their efforts with paid services could become a significant expense.
What’s the Value of a Stay-at-Home Parent’s Work?
The work of a stay-at-home parent is often more valuable than many people realise. Their daily tasks, from childcare to cooking, cleaning, and managing the household, would be very expensive to replace if outsourced.
According to Royal London, the cost of hiring someone to do the same work is 79% higher than most people expect, with a yearly estimate of €30,547.
This shows how much people underestimate the essential and varied duties of stay-at-home parents. Though often unseen, their work plays a key role in keeping the family running smoothly, and losing that support would have a major financial impact.
Why do Stay-at-Home Parents Need Life Insurance?
Many people think only the main income earner needs life insurance, but that’s not true. A stay-at-home parent provides significant value—looking after kids, managing the house, and more—which would be very expensive to replace.
According to Royal London Ireland, it would cost around €54,590 per year to hire someone to handle all the tasks stay-at-home parents do.
If a stay-at-home parent were no longer able to fulfil their daily tasks due to illness or death, the family would face significant costs to replace the services they provide, such as:
Childcare
Paying for full-time childcare, such as creches, childminders, or after-school care, can be expensive.
According to The Irish Independent report full-time childcare in south Dublin costs up to €18,936 annually, while in Monaghan, it’s €4,080 per year.
Household chores
Hiring help for cleaning, laundry, and other tasks typically managed by the stay-at-home parent would add up quickly.
Transportation
The stay-at-home parent may handle school drop-offs, pickups, and other family-related travel, which would need to be outsourced or managed differently.
Meal Preparation
If the stay-at-home parent handles meal planning and cooking, families may need to rely on pre-prepared meals, meal delivery services, or eating out, all of which can quickly become expensive.
Time Off for the Working Parent
The working parent might need to take unpaid leave or reduce work hours to manage the increased responsibilities, leading to a potential loss of income.
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How Much Life Insurance Cover Do You Need?
When considering life insurance for a stay-at-home parent in Ireland, think about the long-term needs of the family. You’ll want to cover enough to replace the value of the services they provide. Some factors to consider include number of children and household expenses.
A valuable resource when planning for life insurance is the life insurance calculator. This tool provides an estimated amount of life cover you might need, acting as a guideline to assist in your preliminary calculations.
Additionally, you can request a quote directly through our service, which compares the best life insurance providers in Ireland all in one place. This convenience allows you to shop around without the need to visit multiple websites—we do all the work for you.
Are you wondering why purchasing life insurance through a broker might be your best choice? Brokers can offer personalised advice and access to a broader range of products than you might find on your own, with better prices!
To understand the advantages in more detail, read our article on why buying life insurance from a broker could be more beneficial for you.
Which Type of Life Insurance Is Best for Stay-at-Home Parents?
As a stay-at-home parent, your contributions to the family are invaluable, even if they don’t come with a salary. Ensuring your family’s financial security is just as important, and life insurance is a key part of that protection. But what’s the best type of life insurance for stay-at-home parents? Here’s a breakdown of your options.
Term Life Insurance
Term life insurance provides a payout to your family if you pass away during the policy’s term. It’s a popular choice because it offers substantial cover at an affordable cost.
However, it only lasts for a fixed period, such as 10, 20, or 30 years. If the policy expires before a claim is made, there’s no payout. Term life insurance is ideal if you want cover until your kids are grown or until other financial milestones are reached.
Whole of Life Insurance
Whole of Life Insurance covers you for your entire lifetime. This means that no matter when you pass away, your family is guaranteed to receive a payout.
It’s generally more expensive than term life insurance but offers lifelong security. For stay-at-home parents looking for long-term peace of mind, this type of policy ensures your family’s financial needs will always be protected.
Convertible Life Insurance
Convertible life insurance gives you flexibility. Like term insurance, it covers you for a specific period, but with the added benefit that you can convert the policy into a longer-term or whole-of-life policy later on.
The big advantage? You won’t need to provide any additional medical information at the time of conversion. This makes it a great option if you want affordable term cover now, with the option to extend or enhance your cover in the future without any health checks.
Read more about Convertible Life Insurance
Additional Cover Options
To make your cover more comprehensive, you can also consider adding extra protection:
Serious Illness Cover: Provides a lump sum if you’re diagnosed with a critical illness, offering financial relief during recovery. Learn more by exploring our Serious Illness Cover Guide.
Income Protection Insurance: This covers a portion of your income if you’re unable to work due to illness or injury, ensuring your family’s financial stability even if you can’t earn an income. Learn more by reading our Income Protection Guide.
Health Insurance: This insurance provides cover for medical expenses, reducing the financial burden of healthcare costs for you and your children. Learn why health insurance is a must-have in Ireland.
Choosing the right life insurance policy as a stay-at-home parent is about balancing affordability with long-term security. Whether you opt for term, whole of life, or a convertible policy, the key is making sure your family is protected, no matter what the future holds.
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Life Insurance – Types of Cover For Stay-at-Home Parent
Single
Getting a quote by yourself and taking out a single policy.
Joint
This policy covers you and your partner and will pay out once. This policy can either be set up on a Joint Life First Death basis, i.e., the policy will pay out on the death of the first life assured, and cease.
Or on a Joint Life Second Death basis, i.e., there will be no payment on the death of the first life assured, however, the policy will pay out on the death of the second life assured and then the policy will cease.
Dual
Dual cover will pay out on the death of both the first and second lives assured. On the death of the first life assured, the benefits will be paid to the remaining life assured.
The benefits will be paid to their estate upon the death of the second life assured. Once the policy has paid out on both the first and second lives assured, it will cease.
If you want to learn more, read our article on Joint vs. Dual Life Insurance: Which Is Better for You?
Is There Any Life Insurance Benefit I Can Enjoy While I’m Alive?
Life insurance isn’t just about providing financial security after you’re gone; it also offers benefits you can use while you’re alive.
For instance, Hospital Cash Benefit provides a daily cash payout for each day you spend in the hospital. This benefit helps cover out-of-pocket expenses, including meals, transportation, and parking fees, which might not be covered by your private health insurance.
These additional funds can ease the financial burden during hospital stays, ensuring you can focus on recovery without worrying about unexpected costs.
Read our article to learn more about the various living benefits of life insurance and how they can support you and your family in times of need.
Additional Benefits For Stay-at-Home Parent
Life insurance providers in Ireland do offer special benefits. Many insurers provide Children’s Life Cover and Serious Illness Cover for children as benefits when you hold Life Insurance and Serious Illness policies, respectively.
Aviva Care
When you choose Aviva for your Life Insurance, Serious Illness Cover, Mortgage Protection, or Income Protection, you can access an exclusive health and well-being service called Aviva Care.
This service is included free of charge with all new protection policies, offering a suite of valuable benefits designed to support your overall health and well-being.
Aviva Care provides policyholders with four great benefits at no additional cost: Digital GP, Best Doctors Second Medical Opinion, Family Care Mental Health Support, and Bereavement Support.
Helping Hand
Royal London goes beyond the typical insurance offering by providing access to a service called Helping Hand, which grants you access to dedicated medical professionals from the day your policy starts—not only when you make a claim.
This unique feature includes all nurses available to give you a second opinion on your diagnosis and future treatment options without additional cost. Helping Hand isn’t just for policyholders; your spouse and children can also use the service.
Should you ever experience a serious illness, injury, or bereavement, Helping Hand offers crucial support that extends beyond financial aid. To aid in recovery or coping, Royal London, through Helping Hand, may provide access to specialist therapies such as bereavement counsellors, speech and language therapists, face-to-face second medical opinions, complementary therapies, and physiotherapy for specific serious health conditions.
Get a Life Insurance Quote For Stay-at-Home Parents
Getting a life insurance quote for stay-at-home parents is an essential step in safeguarding your family’s future.
Whether you’re looking for term life insurance, a whole-of-life cover policy, or a specific plan tailored to your circumstances, LowQuotes provides the tools and information you need to make an informed decision.
We also provide various financial services, such as mortgages, serious illness cover, pensions, financial planning, health insurance, and savings & investments.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
