Life insurance for stay-at-home parents: valuing the care you provide

Salary to replace

Often none

Care to replace

Childcare, school runs, home

Tax-Free Childcare top-up

Up to £2,000 a year per child [3]

Protection claims paid 2025

97.9% [7]

Why unpaid care still needs protecting

Life insurance conversations usually start with income: who earns, and what would the family lose if that earner died? That framing leaves out a parent who stays at home, works part time or has paused a career to care for children. They may bring in little or no salary, yet the work they do every day — childcare, school runs, cooking, cleaning, managing appointments, caring for relatives — keeps the household running.

If that parent died, the surviving parent would face a choice. They could pay for childcare and household help so they can keep working, reduce their hours and accept lower income, or stop work entirely. Each option has a cost. Term life insurance can provide a lump sum to meet it, giving the family time and choices during a very difficult period. MoneyHelper’s guide to life insurance explains how term cover pays out if the insured person dies during the policy term. [1]

The same logic applies to a parent who earns less than their partner. Their income may be modest, but their contribution to care is often large. Protecting only the higher earner leaves half the household’s risk uncovered. Our guide for new and expectant parents explores how families can plan for both parents together.

Putting a figure on replacement care

Start with childcare. List the hours of care the children would need if the stay-at-home parent were not there: before and after school, school holidays, sickness days and, for younger children, full-day nursery or a childminder. Local costs vary widely across the UK, so use real quotes from providers near you rather than a national average. Then estimate the years that care would be needed, which usually shortens as the children grow.

Next, add household support the surviving parent might pay for: cleaning, help with meals, transport to activities, or care for an older relative the stay-at-home parent currently supports. Then consider the surviving parent’s own income. If they would reduce their hours, the lost earnings over those years form part of the need. Finally, add any share of the mortgage and debts you want this policy to cover, and subtract savings and any existing cover.

Our needs guide includes a worksheet for the full calculation. The result for a stay-at-home parent is often smaller than for the main earner, because childcare needs reduce as children grow, but it is rarely zero. Because the need shrinks over time, some families consider decreasing cover or a family income benefit policy, which pays a regular income rather than a single lump sum. Our cover types guide compares the shapes.

What state support covers

Some state support may help, but it is not designed to replace a parent. GOV.UK explains that Bereavement Support Payment may be paid to a surviving spouse or civil partner under State Pension age if the person who died paid National Insurance contributions, with a higher rate for those entitled to Child Benefit. [2] A parent who has been at home may have National Insurance credits through Child Benefit, but eligibility depends on circumstances, and unmarried partners are not eligible for Bereavement Support Payment.

Child Benefit continues to be paid for eligible children, as GOV.UK sets out. [4] Tax-Free Childcare can add up to £2,000 a year per child towards approved childcare for working parents, [3] and some families may be entitled to funded childcare hours depending on the child’s age and the parents’ work. These help with the cost of care, but they rarely meet it in full, and they do not cover household help or reduced working hours.

Choosing the structure

Families protecting a stay-at-home parent usually choose between two separate single policies, one for each parent, and a joint policy that pays on the first death. Two single policies let each parent be covered for a different amount and term, which suits households where the main earner needs more cover than the parent at home. Our joint versus single guide compares the structures in detail.

A common pattern is a larger level policy on the main earner, sized to replace income and clear the mortgage, and a smaller policy on the stay-at-home parent, sized to fund childcare and reduced working hours until the youngest child reaches a chosen age. Because the stay-at-home parent’s need is usually shorter, their policy term can often be shorter too.

Applying is the same process for both parents. Insurers ask about age, health, lifestyle and nicotine use, as explained in our guide to medical questions and underwriting. An applicant without a salary can still take out cover; the amount should be reasonable in relation to the costs the family would face. Under the Consumer Insurance (Disclosure and Representations) Act 2012, each applicant must take reasonable care to answer accurately. [6]

Guardians, wills and trusts

Life insurance is one part of a plan for the children. GOV.UK explains how to make a will, [5] and a will is the usual place to name who you would want as guardian if both parents died. Without one, the court may need to decide. Parental responsibility rules also matter: GOV.UK sets out who has parental responsibility and how it can be obtained. [8] Unmarried fathers do not always have it automatically.

Writing each policy in trust helps the money reach the right people without waiting for probate. HMRC explains how trusts are treated for Inheritance Tax. [9] For a family with young children, the trustees may be the surviving parent and a trusted relative, holding money for the children’s benefit. Our trusts guide explains the options and what to consider when choosing trustees.

Practical steps for families

1. List what the parent at home does

   Childcare, school runs, household work, care for relatives.

2. Price replacement care locally

   Use real nursery, childminder and wraparound rates near you.

3. Estimate reduced working hours

   Include the surviving parent’s lost earnings.

4. Choose term and structure

   Often a shorter separate policy for the parent at home.

5. Make wills and name guardians

   Check parental responsibility, especially for unmarried parents.

6. Write policies in trust

   Help the money reach the children without waiting for probate.

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