Posted 3 Oct '17

Income Protection And Total Permanent Disability Insurance For Home Duties

The real value of a stay at home parent

Many people overlook insurance coverage for a stay-at-home parent as we usually think that insurance is put in place to replace lost income. Even though full-time homemakers don’t earn an income, have you considered the cost to replace your contribution at home while your spouse continues to work? It’s important to review options like total permanent disability insurance and income protection.

If you are severely disabled, due to sickness or injury, and are unable to perform your normal household duties – how would you fund the cost for help to run your household while your spouse has to go to work?

Just because someone doesn’t earn an income doesn’t mean that they don’t make significant contributions to the family that could be costly to replace. You should consider whether your family could afford to pay someone else to provide these services in replace of you. The cost of child care alone can represent a significant financial burden for families when the main caretaker is seriously ill or injured.

What is recognised as Home Duties?

Each insurance provider has their own definitions of home duties. The included domestic duties vary from one policy to the next but will typically include some or all of the following:

• Cooking family meals
• Cleaning the home
• Doing the laundry
• Taking care of children or other dependents, including bathing, dressing and counselling
• Doing the family grocery shopping
• Changing bed linen
• Caring for family members when they are ill

There are two main types of home duties protection:

1. Total and Permanent Disability Insurance (TPD)
   This provides a lump sum payment for homemakers if they become severely disabled, due to sickness or injury, and they are unable to perform normal household duties.
2. Income Protection
   This provides a monthly benefit for homemakers if they become severely disabled, due to sickness or injury, and are unable to perform their normal household duties.

At Easdowns Financial Services, our advisers can help you estimate the cost of replacing you with childcare, a cleaner, grocery shopper, a driver etc. We can then assist you with finding the appropriate type and level of cover for your home duties and total permanent disability insurance needs. Give us a call on (02) 6921 2058 or email us at financialservices@easdowns.com.au to book an appointment with one of our professional advisers.