Research in 2016 by leading life insurance provider SunLife looks at the value of the unpaid work carried out by mums and found that, on average, mums are worth £26,241 a year to the family. The figure rises to £29,812 for stay at home mums.
With these significant figures in mind, it is concerning that the study also shows that more than two in five mums have no life insurance. This figure rises to nearly two thirds for stay at home mums.
The value of stay at home Mums and Dads
Mums (and dads) who either stay at home or work part-time, contribute considerable amounts of unpaid work hours per week to the family (48 hours 24 minutes and 56 hours and 36 minutes respectively). However, it can be easy to overlook the monetary value of this work and think that life insurance is not needed.
Existing life insurance may be inadequate
The survey also found that for those who do have life insurance, the average cover is £120,437, decreasing to £106,152 for stay at home mums. If we look at figures for average outstanding mortgage (£85,000)1, average household debt (£8,000)1, average household spending (£531 weekly)2, pre-paying funeral fees (£3,897)3 and the cost of other expenses like university fees (£27,000)4, these cover amounts seem inadequate. If you factor in the cost of replacing the unpaid hours of a mum or dad should they unexpectedly pass away, then the gap widens even more.
Check your situation
The good news is that you can do something about it if you find you are in this situation – talk to a professional. A financial planner can help you find the right solution to your particular situation. They will calculate how much life cover you need and make sure any solution is affordable.
1. Average outstanding mortgage £85,000, average unsecured household debt £8,000. Source: Bank of England
2. UK households spend £531/week on average which is £27,627 per year or £2302.30/month. Source: Office for National Statistics
3. The average funeral costs £3,897. Source: SunLife Cost of Dying report 2016
4. University fees are currently £9,000 a year. Source: gov.uk