Why Mums Deserve To Be Spoilt On Mother’s Day

Being a mum is a most important role, and unlike most careers, it’s a 24/7 job. So making mums feel special with a little extra love and attention on Mother’s Day is a lovely way to say thanks. While this might mean a little gift, it should definitely mean doing no housework on the day, and not having to cook meals either!

In Australia, Mother’s Day is often celebrated with breakfast in bed, fancy brunches or picnics, and gifts of flowers, chocolates and special trinkets from the kids. It’s a day to show appreciation for the many things that mothers do.

With this special day fast approaching on May 14, now’s also a good time to take a look at the Life insurance needs of mums, and the value of all that unpaid work, from the household chores to childcare.

Women and insurance

Whether you’re a stay-at-home mum or a working mother, you will no doubt be involved in the joint financial decisions in your household. Unfortunately, its well known that many women remain considerably underinsured when it comes to Life insurance. Virtually all the research shows that women lag behind men when it comes to having personal insurance, which includes Life Insurance, Income Protection Insurance, and Trauma insurance.

This often occurs because women are more likely than men to be the stay-at-home partner and/or the lower income earner in a household, and couples make the decision to financially cover the partner who earns the most. However, this downplays the significant role that women – whether employed outside the home or not – hold within the family home.

While staying home to take care of the children may not directly bring in revenue, it still has a significant value in financial terms.

For instance, if the stay-at-home parent was not there to perform those important tasks, the other parent may have to pay someone else to do them, which could prove very costly, particularly over the longer term.

The value of unpaid work

According to Pricewaterhouse Coopers (PwC), the total market replacement value of unpaid work in Australia is $565 billion, of which domestic work comprises approximately 23% and childcare 72%.

So while the stay-at-home partner may not think of her (or his) contribution as having financial value, it actually does when you consider that to replace it would require considerable funds. It’s important that couples consider this when looking into securing financial protection through insurance.

So, what sort of insurance should women consider?

Women should consider personal insurance to cover the financial benefits which they provide for their households. These include

• Life Insurance – this cover provides a lump sum payment on the death of the person insured. The funds can pay for the costs of the work being performed by the stay-at-home partner, such as all the domestic duties and childcare. This insurance is also of course important for mums who work either part time or on a full time basis.
• Trauma Insurance – this cover provides a lump sum payment in the event of a medical condition occurring, including a heart attack, cancer and stroke.
• Income Protection – this cover provides monthly payments of up to 75% of pre-disability income in the event of a serious illness or injury which leads to the Life Insured being unable to work. This cover is particularly important for women who work either full time or part time (minimum 20 hours per week).

To discuss these types of cover for yourself or your partner, please contact our team. You can also try our online calculator to get an idea of how much cover you need for yourself and your family. If you need more information about how life insurance works download A Guide to Life Insurance from our website. But whatever you do, make sure to have a Happy Mother’s Day 2017!

Source:

PricewaterhouseCoopers, Understanding the unpaid economy