JobzkdfA stay-at-home parent provides work that would be expensive to replace. Here is how to think about cover.
The unpaid job has a price
Childcare, cooking, cleaning, transport and household management would cost real money if someone had to be paid to do them. Many estimates put the value well above what people assume.
What the cover would pay for
A policy for a stay-at-home parent helps the surviving partner reduce work hours, hire childcare and keep routines steady during a hard time.
How much to choose
List the services you would need to buy, such as after-school care and housekeeping, multiply by the years until the children are independent, and add final costs. A term policy matched to that period is usually the most efficient choice.
Keep it simple
Term cover is cheap for healthy adults. Compare quotes and make sure both partners are covered, not only the main earner.
Next step
Run both adults through the needs calculator, using the replacement cost of household work instead of a salary.
General information only, not financial or insurance advice.