Don't underestimate the value of the homemaker

We have already seen how a family can be protected from the financial impacts of losing the family's breadwinner, but it is also important to consider insuring the homemaker.

Despite the advances of modern technology such as washing machines, irons and dishwashers, there are still plenty of things that need doing around the house. For many families, there is someone who is predominantly the homemaker and child carer - without them the family is often lost. They may not be the primary income earner but their support ensures that the family is fed, clothed, and at school or work on time.

Think about how much it would cost to hire someone to take their place, if something should happen to them. Their financial worth is a lot more than most people expect with costs of child care and home help.

Yet surprisingly, the homemaker is, at times, neglected when it comes to insurance. Their loss or a serious illness also often serves a significant emotional and financial blow to the family.

How does the strategy work?

Generally, a breadwinner will often only have two choices upon the death or disablement of a homemaker. They can choose to take leave from their own job to look after the household, or employ someone else to do it. Either way, both options will have a negative impact on the household income and this is even before they start to account for the spiralling medical costs if the homemaker is critically ill or totally disabled.

Life, total and permanent disability, and critical illness insurances can provide a lump sum payment upon the occurrence of one of these events to help meet the household budget. The combination of these covers can provide you and your family with a financial lifeline to get the additional help needed.

The Benefits

A lump sum payment may be used to:

• cover the cost of medical expenses associated with disablement, serious illness or death of a spouse

• support the family in their time of need by paying additional expenses such as child care, nursing care or housekeeping.