Stay-at-home mom: Possibly the most undervalued job

Having a baby? Then make sure you have the right medical plan.
May 5, 2015
Welcome Lazarus Dash and Associates
May 5, 2015

FPM_A2bBecause the month of May is Mother’s month, we have opted to focus on the value a stay-at-home mom adds to a household and how detrimental it would be to the household’s wellbeing and budget if mom was no longer able to hold the fort.

The stay-at-home mom is a multi-tasker in the truest sense of the word. She takes responsibility for a plethora of tasks from homemaking to bed-time stories – a job specification that would scare most successful MDs.

It is interesting that when we talk to families about insurance cover, often the stay-at-home mom is overlooked because “she doesn’t have a job”. This is far from the truth: when preparing a risk analysis you always start off by looking at what needs to be replaced if the person fulfilling those roles is unable to do so any longer. So let’s look at the costs of replacing a nanny, a chauffeur, cook, house keeper, tutor, nurse, and bookkeeper – to name a few of the roles a stay-at-home mom fulfils.

Have you considered the cost of replacing the skills of a stay-at-home mom? A diagnosis of anything from a dread or chronic disease such as cancer, coronary artery disease, multiple sclerosis, lupus, diabetes, neurological disorders or depression to a traumatic event such as a heart attack, stroke, injuries or death from a car accident or any other cause will multiply the heartache and expense to an already compromised and unhappy household.

It is common that many couples haven’t thought about the potential repercussions of not insuring the life of the stay-at-home parent, but as you can see, life insurance for the spouse who works at home is equally as important as life insurance for the main breadwinner.

The good news is that insurers recognise the stay-at-home mom as an insurable occupation and offer the following insurable benefits:

  1. Dread Disease Cover
    This benefit provides cover for specified severe or trauma illnesses. It pays out a lump sum on the diagnosis of an illness such as cancer or a heart attack, stroke, etc.
  2. Impairment Cover
    Impairment cover compensates for specific physical impairments such as the loss of the use of a limb and pays a lump sum on the diagnosis or occurrence of such impairments. The benefit received from this lump sum may be used for any lifestyle adjustments required such as creating a wheel-chair friendly home.
  3. Life Insurance
    Life cover can’t bring a loved one back, but it can make life a little more comfortable for those left behind.

So how do you calculate how much cover you need?

The best place to start is to calculate what services would need to be bought if your stay-at-home mom was unable to do the jobs she was able to do in the past. Also relevant are the number of children you have and /or plan to have, the breadwinner’s salary, and job security.

The million dollar question: how much does it cost?

To find out more, give us a call on 0861111376. We’ll be happy to prepare a full needs analysis for you and give you all the relevant information to make the correct decision.

The Baobab Award

Roma Coetzee
Senior Policy Servicing Administrator
FPM Administrators (Pty) Ltd
roma@fpm.co.za

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

SRA
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