The work that would need replacing
Families with one parent at home often insure the earner and forget the other. Yet the parent at home is doing a full working week: the nursery run, the meals, the washing, the sick days, the homework and a hundred small jobs that keep a household moving.
If that parent died, the working parent would face a choice between paying for all of that or cutting their own hours. Life cover gives them money to make the choice that suits the children. They could keep their job, cut back their hours or take a long break to be at home, without money making the decision for them.
Putting a figure on it
Think about what you would pay others to do. That might be a nursery or childminder, wraparound school care, holiday clubs, a cleaner, or a relative's travel costs. The amount usually falls as the children grow older and more independent.
Because the cost shrinks over time, a decreasing policy or family income benefit often fits. Family income benefit pays a regular monthly sum, which lines up with how childcare is billed. As the children get older, the payout period shortens, so the cost of the cover falls too.
- Nursery, childminder or nanny costs until school age
- Before and after school care, and holiday clubs
- Help with cleaning, cooking or laundry
- Time off for the working parent to grieve and adjust
- Any years a younger child still needs full-time care
What insurers look at
Insurers want the cover to be reasonable for your situation. For someone without earned income they often look at the household's finances and the cover held on the working partner. Some set an upper limit on the sum they will offer a non-earning applicant.
This rarely stops a stay-at-home parent getting a sensible amount of cover. We know which insurers on our panel treat non-earning parents fairly and will explain any limits before you apply. If you have a health condition, let us know early, as it can affect which insurer suits you best.
Look at the working parent's cover at the same time
With one salary, the family has all its eggs in one basket. If the working parent died, the parent at home might need to go back to work and pay for childcare at the same time. Their cover may need to be larger than a two-income family would choose.
Income protection for the earner is worth a thought too. A long illness would stop the only salary, and the household might struggle more than one with two incomes. Reviewing both policies together is the best way to see whether the family is protected from both directions.
When the parent at home goes back to work
Plenty of stay-at-home parents return to paid work once the children start school or reach their teens. Your cover can change with you. If you start earning, you may want more life cover or to add income protection, because the family would then lose a salary as well as your time.
Some parents run a small business or freelance from the kitchen table while caring for the children. Tell the insurer about any earnings, even part-time ones. They can change the amount an insurer will offer and open up cover that a non-earning applicant cannot get.
A short review every few years keeps both policies in line with family life. Changes in childcare, a new baby or a move are all good prompts to check the numbers still work, and we are happy to look again with you whenever that happens.
How Hi Tomorrow helps families with a parent at home
We look at both parents together. We ask about the children's ages, the childcare you would need and the cover the working parent already holds, then compare the insurers on our panel for both of you. You can speak to us together or separately, whichever suits your day.
We help you settle on amounts that feel right without stretching the budget, and set up trusts so the money would go to the right person. We are here to help your family if they ever need to claim. A call to us is all it takes, and we will work with the insurer on their behalf.