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Why homemakers need insurance too

When it comes to insurance, cover for a non-income generating spouse can often be overlooked. In many cases, the economic value attached to a Homemaker is underestimated and as a result, only the bread winner of the family is afforded cover.

If you start to consider the role of the Homemaker and what the costs would be to cover their duties, you soon realise the value of their role.

Childcare
If you or your spouse is the primary caregiver during working hours, what would happen if you had to cover the costs of childcare to ensure that the main earner is free to continue working?

The answer to this will of course depend upon your needs, the number of children you have and their ages. As an idea, the average cost of childcare is $7 per hour. If you extrapolate that out to 40 hours, the costs soon mount up to near $300 per week, per child.

It is also easy to assume that only children who are not of school age will incur childcare costs. But school aged children may still require after school care or even the services of a chauffeur to drop them at after school activities. If you don't have family members you can call on, these are real costs.

It is important to realise that it is not only in the instance of death that these costs need to be considered. If the Homemaker is unable to take care of the family due to a serious illness, alternative childcare arrangements may also need to be sought.

Taking care of the home
If there is no Homemaker to perform duties that keep the household running i.e. cleaning and cooking, you may need to seek external help.

If you do not want the cleaning duties to fall upon the working spouse, you can employ the services of a cleaner for approximately $20 per hour.

The costs add up
By only considering the average cost of 40 hours per week of childcare for one child, and the services of a cleaner for four hours per week, the cost to replace your Homemaker is approximately $20,000 per year.

For many, finding an additional $20,000 per annum to replace the Homemaker is a challenge. Not to mention that the remaining spouse may have to reduce their working hours to become the main carer. Some further costs that may be overlooked include:
  • The cost of covering a funeral
  • The cost of time away from work to grieve and support the family
  • Relocation costs to move closer to family for support
  • The cost of the sole earner taking time away from work to support a sick spouse – remember that all the usual bills will continue even though they aren't working
Image courtesy of David Castillo Dominici / Freedigitalphotos.net