Quick Verdict
Myth. Someone does not have to earn a salary for their work to matter financially.
Why People Believe It
Insurance is often discussed as a way to replace lost income. That can make the work done at home easy to overlook.
Reality Check
A homemaker may care for children, manage the home and support older family members. If they become seriously ill or die, the family may suddenly need to pay for childcare or other help. Health insurance matters whether a person earns a salary or not. Life insurance may also be useful in some families, depending on the work that would need to be replaced, the family’s savings and the cost of cover. There is no single answer for every household.
A Better Rule
When planning insurance, think about the financial effect of losing each family member’s contribution, not just their salary.