Beyond the Race Winner: Is Your Household Protected?

In the high-speed world of racing, as on the track, each team member’s role is crucial for success. Similarly, in the household, each partner plays a vital part in maintaining the family’s harmony and functionality. Often, we recognize the financial contributions of the breadwinner, but what about the equally significant role of the spouse who manages the home? Each person has an important role separately; but together, they create a family and a home. If either spouse were suddenly unable to contribute, the entire family would suffer.

Each partner brings important value

Society has been quick to acknowledge one part of the family equation: the breadwinner. But increasingly, people realize the understated value of the stay-at-home spouse. This person often handles the all-encompassing world of childcare. They may also manage household duties such as grocery shopping, arranging medical appointments and home cleaning, just to name a few.

Median stay-at-home salary: $184,820 per year

This work has a lot of value, even if it doesn’t deliver a paycheck. In fact, one survey in 2021 estimated that if stay-at-home parents were paid for their work, the median salary would be $184,820 per year.¹ (And that’s before many parents started homeschooling during the pandemic!)

Accidents and illnesses can happen

Each spouse has a crucial role in creating the greater whole of a strong home and family life. But what happens if one of the partners can no longer contribute?

Traditionally, income protection (also known as disability insurance) focuses on the income-generating spouse, but a partner who stays at home puts in a lot of work, every day, and if they couldn’t, hiring out to get those tasks completed would cost a significant amount.

It’s estimated that one in four 20-year-olds will suffer a significant illness or an injury before retirement age.² This unforeseen event may make them unable to work, whether that’s inside or outside the home. Further, the average disability time is over two and a half years.³ When this happens to the stay-at-home spouse, it leaves a big gap in services needed.

Spousal coverage policies now cover stay-at-home partners

Several insurance companies are now offering spousal coverage policies in tandem with income protection programs. These policies go a long way in acknowledging the critical work that stay-at-home partners provide for a family. If the home partner is unable to work due to an injury or an illness, the policy will pay for outside services, like childcare, to support the family while the partner recovers.

Specifics of spousal coverage to consider

Spousal coverage policies can vary among providers. As an overview, the policies tend to cover stay-at-home spouses within a specific age range, such as 18–45 years old. They may also offer a set benefit term, for example, between 5 and 10 years. Plus, like traditional income protection insurance, there’s typically an elimination period of 90 or 180 days that must pass before the payments begin. And with some carriers, traditional and same-sex marriages as well as civil unions are eligible.

Just as a driver consults with their team to optimize each aspect of their race strategy, it’s wise to consult a financial planner to ensure your family’s financial strategy is robust. This includes considering income protection and evaluating spousal coverage options to safeguard all members of your family. After all, like a well established race team, every family is greater than the sum of its parts, and protecting each member’s contribution is key to maintaining your family’s overall stability and progress.

SOURCES:

¹ How Much Is Mom Really Worth?The Amount May Surprise You, Salary.com,  2021

² Social Security Administration Fact Sheet

³ https://www.guardianlife.com/disability-insurance/how-long-does-disability-coverage-last

DISCLAIMERS:

Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.

Elliott is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Alliance Financial Group is not an affiliate or subsidiary of PAS or Guardian. 2024-175382 Exp 5/26

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