Did you know that insurance companies offer cover for home executives?

Taking care of a home and children is one of the most important jobs anyone could have. Despite home executives taking care of many duties, covering them should they suffer a serious illness or injury, or should they even pass away, is not something we consider when taking out life insurance.

Why it’s important for home executives to have insurance cover

Just as important as it is that the breadwinner in a household should have insurance that will cover them and their families should they not be able to provide financially because of disability or death, it’s essential that a family have enough cover for a home executive.

Home executives are often responsible for things like childcare, transporting children to and from school and various extracurricular activities, taking care of the household, and so much more. What would happen if they suffered a serious illness or injury that prevented them from doing these things? The family would need someone else to take care of those duties, probably at a significant cost.

Having the correct insurance cover will allow the family to hire extra help like an au pair to take of the children, a home nurse (if necessary) to help take care of the home executive, and someone to run the household. These are additional funds that would not be budgeted for and are hard to quantify.

This is where insurance cover would come in. Home executives can get cover for the following benefits:

1. Temporary disability or impairment cover – this would provide a monthly income until the home executive recovers from their condition and could be used to pay for childcare until the home executive gets better.
2. Permanent disability or impairment cover – this would provide a lump sum payment or long-term monthly payments should the home executive suffer a permanent disability.
3. Critical illness cover – this would pay out if the home executive suffers from a serious illness or injury that meets the insurance company’s criteria and could help with costs that the medical aid won’t cover, and lifestyle adjustments such as ramps and wheelchairs.
4. Death cover – this would pay out if the home executive passes away and could be used for a funeral and other death-bed expenses.

How insurance companies determine how much cover they can offer home executives

There are some limits and conditions that apply to cover for a home executive. Typically, life insurance companies will use a home executive’s spouse’s income and other underwriting factors, like age, to calculate how much cover to offer them. This cover will be subject to certain limits per benefit (for example, a maximum amount of cover, like R5 million for permanent disability).

Speak to your financial adviser today for more information on insurance solutions for home executives

Getting life insurance for a home executive is an essential part of a sound financial plan. If your family has a home executive and one breadwinner, it’s advisable to review your insurance needs and cover to ensure that you have sufficient financial protection. Speak to your financial adviser today to see the life insurance options that are available for home executives.

This article was first published online on Independent Online News on 29 September 2024. Click here to read the original story.