Insuring a very important person. Have you forgotten someone?
Most people agree that the wage earner in any family should have personal insurance protection. After all, how would the family survive without a breadwinner’s income in the case of illness, accident or worse? But, what if something were to happen to a stay-at-home spouse?
In many circumstances, the breadwinner would have to take on this responsibility, or professional care would be needed, placing a financial strain on the family. It doesn’t have to be that way, and we can show you how.
Matt and Melissa’s situation
Matt and Melissa have two year old twin daughters. Matt is earning around $110,000 a year, while Melissa stays at home and looks after their daughters. They have a $300,000 mortgage and a $500,000 life insurance policy on Matt, but they failed to think of insuring Melissa.
When Melissa passed away unexpectedly, Matt had to take over as primary care giver. He couldn’t find affordable childcare, had to reduce his work hours and in the long term was forced to move in with family members to cut down on costs.
Some of this stress could have been avoided.
If Melissa and Matt had personal insurance protection for Melissa, this could have provided peace of mind for the whole family should the unexpected occur to either parent, not just the ‘breadwinner’. Melissa’s insurance, with appropriate cover, could have enabled Matt to pay off the mortgage on the family home to allow for his income to go towards the long-term care of the children and ultimately assist their daughters’ futures.
The significant impact of losing a family member is undeniable, however some level of financial relief at such an emotionally difficult time can help a family in moving forward.
If you’re keen to have a chat to one of our Financial Advisers about life insurance or any other personal insurances, please contact us.