There are many reasons why someone becomes a stay at home parent, but one of the things that come with this is being able to play the finance game for the long haul. Financial planning for a stay at home parents is crucial, which makes it equally important to have a life insurance policy in place.
Here is what you can do to protect your finances if you are a stay at home parent.
Stay at home parents are better at managing finances
Contrary to the popular myth that stay at home parents spend all day lounging about and going on the occasional shopping spree, it has been found that they are savvier when it comes to handling finances. Most South African households are female-headed with a small population of men becoming stay at home dads who involuntarily become stay at home dads due to retrenchments or choosing to stay at home to support their children voluntary.
Parents who are at home are more in touch with what needs to be spent and where to find the best deals to help them save. They are also constantly looking for ways to grow and protect their finances. However, there is still a portion of parents who end up making financial mistakes due to not knowing which product will be best suited for their situation.
Why life insurance is important
The role of a stay at home parent comes with a large amount of responsibility. Participating in housekeeping tasks such as cooking, cleaning, and making sure that the children are taken care of- even in the form of home-schooling, is considered unpaid labour. According to Statistics SA, 55.2% of women are involved in unpaid labour. The loss of a parent in such a role creates a drastic loss for the family, it can also affect their finances significantly.
For any parent that is looking for ways to protect their finances and provide for their loved ones, even when they are no longer around to do so, life insurance is crucial. It is a safety net that can help you take care of things such as:
Medical bills if you have been diagnosed with a terminal illness
Paying off of any debt you may have accumulated
Payment of educational fees
Handling of daily expenses
Paying off a bond or purchasing a house
Hiring domestic help or a nurse
Helping your partner shoulder financial expenses
The payout on life insurance can be used for a range of expenses, even when you have passed on. It can give you peace of mind knowing that your partner and your children are taken care of.
Every parent's situation is different, especially when it comes to finances. Therefore, speaking to a life insurer can help you find a cover that is suitable for your situation and takes into consideration the various things and people that are close to your heart. Remember to couple this with financial advice to find ways in which you can continue to invest and grow your finances.