When it comes to life insurance, it seems obvious to insure the bread winner of a household, but it might be worth considering the financial impact of replacing all the work a stay-at-home parent does, should the worst ever happen.
When attempting to calculate this figure, there's plenty of articles which estimate value based on cost of individual tasks if hired by a professional, including this one from salary.com:
Chief Executive Officer, 3.2 hours per week: $9,163
Psychologist, 7.6 hours per week: $14,573
Cook, 13.9 hours per week: $9,487
Housekeeper, 14.8 hours per week: $7,511
Laundry Operator, 6.3 hours per week: $3,229
Computer Operator, 8.9 hours per week: $7,142
Facilities Manager, 10.7 hours per week: $17,735
Janitor, 7.7 hours per week: $3,908
Van Driver, 7.9 hours per week: $5,688
OK so maybe a professional cook wouldn't get away with cooking spaghetti toasties for dinner on a Friday night, nor are a majority of parents qualified Psychologists (although they might argue toddler tantrums might require one!). But thinking through all the tasks which would realistically need to be replaced with professional help can be a good step in determining what your partner could afford.
If a stay-at-home Mum was no longer along around to look after the kids and household, the partner would most likely need to put in the kids in
daycare to continue working, may need some extra help with a housekeeper a couple of times a week, might need to hire a sitter for any nights working late or weekend work, and although they may not opt for a professional chef, there might be more spent on take-out dinners. There also might be additional costs like covering a funeral, relocation costs to move closer to family support, cost of time away from work to care for an ill spouse.
Certainly something to think about amongst changing diapers and ballet class drop-offs! If you'd like to have a chat about your options,
get in touch to speak to an adviser.