Protecting the 'unseen' work

Stay-at-home parents are the backbone of many households, devoting countless hours to tasks that would otherwise require paid help.

From caring for children and cooking to cleaning, gardening, and more, they handle a wide range of responsibilities. And while it’s difficult to assign a dollar value to the emotional stability they bring, one thing is clear: replacing their work could easily cost thousands of dollars each year.

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How would your family cope?

It’s not easy to think about, but what would happen if the stay-at-home parent could no longer manage the household due to illness or injury?

In practical terms, the family might need to pay for:

• Childcare support – According to childcare comparison website Care For Kids, the average cost of childcare in New Zealand is approximately $60.23 per day, though prices vary by region and provider.
• Household help – Professional cleaning and household services can add hundreds of dollars a week to family expenses, especially if multiple services are needed.
• Gardening and home maintenance – Lawn care, gardening, and minor home repairs often fall under the stay-at-home parent’s responsibilities. Again, hiring a gardener or handyman for regular upkeep can be costly.
• Pet care – Many stay-at-home parents manage pet care, including feeding, grooming, and vet visits. Regular dog walking or pet-sitting services can quickly add up if outside assistance is required.
• Tutoring and homework help – If the stay-at-home parent provides homework support or educational assistance, hiring a tutor or after-school help could become necessary, particularly for families with multiple school-aged children.

Here’s the bottom line: protecting the contributions of a stay-at-home parent is about ensuring that daily life remains manageable during challenging times.

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Insurance types to consider

Stay-at-home parents may not qualify for income protection insurance, but other insurance types could provide support.

Life insurance, for example, offers a payout to the family in the event of the insured’s passing. This payout can provide financial security, helping cover expenses such as childcare, household help, and even education costs, allowing the family to continue with minimal disruption.

Trauma insurance (also known as ‘Critical Illness Cover’) is another option. This type of insurance provides a lump-sum payment if the insured is diagnosed with one of the qualifying serious illnesses listed in the policy, such as cancer, heart disease, or stroke. The payout can be used however the family chooses, whether to cover medical bills, childcare, household help, or other necessary expenses during recovery.

Lastly, total permanent disability insurance (TPD) offers a regular income if the insured becomes permanently unable to perform their usual duties due to illness or injury. Unlike income protection, TPD is not limited to income earners.

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Ready to explore your options?

If you’d like to find the right level of cover for a stay-at-home parent, get in touch.

Your Insurance Link adviser can assess your unique needs, considering the tasks a stay-at-home parent handles and the potential cost of outsourcing. We’ll also work to find coverage that fits comfortably within your family’s budget.

Remember, insuring a stay-at-home parent is about more than finances. It’s about protecting your family’s ability to function in the face of life’s unexpected events. Let us help you create that all-important safety net.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek financial advice.

A full disclosure statement for each Insurance Link Adviser is available on request and free of charge.