As Mother’s Day has come and gone, the question has to be asked, how much is a mother worth? The loving answer would be priceless, but the financial answer depends on a mother’s life insurance policy.

Mum and the home

The average mum puts in around £32,000 worth of unpaid work a year when it comes to raising a family, new research has revealed.

In comparison to this, an average household will have to fork out around £23,000 every 12 months if they looked to replace the domestic work that dads do with paid help.

Since 2005, the value of British mums has dramatically increased by £8,000. Parents also have to dish out nearly £123,552 in cash over 18 years in order to cover the expense of each offspring.

“Families need to ask themselves how they would cope with all the domestic work and childcare that mum does if she wasn't around. People shouldn't assume that extended family or the state will fill the gap,” advises Alan Ferguson, Protection Marketing and Channel Development Director at an insurance company.

A life without life insurance

Ferguson said: “Mums are a rock for many families, making sure the home runs smoothly, that the children are looked after and often holding down a job of their own.”

However, the study revealed that dads and mums are putting their finances at risk by not having adequate life insurance cover in place, meaning their children may be left short should something unexpected occur.

In addition, the recession has meant that many Brits are further pushing their savings to one side, with 72% of mother’s tightening their purse strings. However, in these uncertain times life insurance could be even more important in providing a cash pot for children. Shockingly though, only 53% of mothers have a life insurance policy and just 26% have critical illness cover.

Ferguson noted: “Life insurance and critical illness cover can help provide peace of mind that a family could maintain its living standards if mum wasn’t around.”

With the penetration of ‘protection’ so low, many families are vulnerable from suffering financial jeopardy. The study asked married parents and those living as married how they thought their partner would manage in the event of their death.

The most popular answer (35%) was to rely on grandparents to look after the children, whereas 30% said they would work part-time. This would therefore have a direct result on the standard of living.

54% of working men and women said that they would make cutbacks and reduce spending if they were unable to work because of illness or personal injury and 38% said that they would rely on their partner's wage.  37% said that they would get sick-pay from their employer for a certain time. Surprisingly, only 29% of parents stated they have made a will.

Shop around

Chris Eagle, commercial manager at an insurance firm said when purchasing an insurance policy, parents should compare deals and shop around first: “When choosing a suitable life insurance or critical illness policy, make sure you compare deals from several providers and always read the small print so you know exactly what you are covered for.”