Life insurance and disability insurance considerations for Homemakers

A PwC report estimates that the value of unpaid childcare alone is $345 billion; and if unpaid childcare were regarded as an industry, it would be the largest in Australia, almost three times the size of the financial and insurance services industry (in 2011 terms).

Homemakers include stay-at-home parents, part-time workers, or employees on a break before returning to the workforce.

Many families with a home maker do not always understand the importance of life insurance and the types of cover which may be suitable to them.

Understanding how life insurance can protect and support homemakers is a valuable part of an holistic approach to providing financial advice – one that takes into account the entire family.

Many may be surprised to find that the cost of replacing someone to provide childcare, transportation, household cleaning and cooking, along with family management, can be higher than replacing employment income.

There is a range of life insurance policies suitable for people who fall into the category of ‘homemakers’.

For example, some insurers offer specific income protection and total and permanent disability (TPD) policies for clients performing home duties. Generally, they are aimed at individuals who are wholly involved in performing home duties, or those that engage in less than 20 hours of paid work a week.

This is general information. Contact Experien Insurance Services to find out more about what may be suitable for your own circumstances.

Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. This is general information and you should not act on it, or rely on it, without obtaining personal advice. Always read the product disclosure statement (PDS) issued by an insurer before considering to take out insurance. See our website for our Financial Services Guide.