Every member of your household plays a role: Here’s how to protect them

If you’re employed full time, you may have income protection (also known as disability insurance) in place to take care of you and your loved ones if something should happen to you. But what about spouses who stay at home, or gig workers without insurance?

If you fall into one of those categories, you’re contributing to your family in a significant way — providing childcare, grocery shopping, arranging medical appointments, or working part time in the gig economy. And if you couldn’t do those tasks anymore due to illness or injury, your family would suffer.

Society has been quick to acknowledge one part of the family equation: the breadwinner. But some may not realize the tremendous value of stay-at-home spouses and gig workers.

Putting a dollar value on stay-at-home work

Believe it or not, you can start to put a number on the value of stay-at-home work. One survey in 2019 estimated that if stay-at-home parents were paid for their work, the median salary would be $178,201 per year.¹

But it’s estimated that 1 in 4 20-year-olds will suffer a significant illness or an injury before retirement age.² Something like this could make you unable to work, whether that’s inside or outside the home. The average disability time is over two and a half years, so full-time employees have some protection.³ But when this happens to the stay-at-home spouse, it leaves a big gap in services and resources needed.

Gig workers have flexibility, but at a cost

Gig work is popular and growing rapidly. In fact, by 2028, it’s predicted that there will be more gig workers than traditionally employed workers in the US. But according to our research, 46% of full-time employees have disability, but only 19% of gig workers do. Similarly, compared to 68% of full-time employees, only 48% of gig workers have life insurance. In many cases, married gig workers are reliant on their spouse for coverage, with 81% of partnered gig workers purchasing life insurance through their spouse’s employer. Single gig workers are the most vulnerable: single gig workers with dependents are half as likely to have life insurance as those with partners.⁴

Lack of insurance puts families at risk

As a whole, Americans tend to be underinsured when it comes to life insurance. Our research shows that on average, working Americans have two to four times their salary in coverage, which is well below the industry recommendation of 7 to 10 times one’s salary.⁵

So, the financial impact of losing the primary breadwinner can be especially devastating. In fact, 76% of workers who lost their spouse prematurely five or more years ago still feel they haven't fully recovered financially.⁵

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 benefits can be used to pay for outside services, such as childcare, to help 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- to 45-year-olds. They may also offer a set benefit term, for example, between five 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.

To ensure your family is protected, talk with a financial professional. They will take your whole financial picture into account, from your family’s current day-to-day needs to income protection to lifelong goals. Financial professionals understand that every family is greater than the sum of its parts.