I'm finding it difficult to understand how you can be so obtuse and insensitive Squirrel. Let me try to explain again.
My colleague and his wife are both teachers by profession. The wife has been a SAHM for about 4 years since having her first child. During this time the whole family has coped on 1 teacher's wage (his). They have a mortgage, a car, shopping to pay for. During this time they have used up their savings, they decided they didn't want to pay for life assurance, critical illness etc (after all they're young, they've been healthy and the wife always intended to return to work)
If my colleague's wife was still working she would get at least 6 months six pay (granted 6 months isn't a huge amount. I imagine it's worth about 15 grand but that money could have paid for childcare etc and as it is they have no spare cash), they would have had a childminder, they probably would have had some money in the bank and probably made some provision for life assurance, critical illness etc. If she died he would get her pension as death in service.
As it is, my colleague is having to take time off work to look after the kids (he can't fully support his wife because he has to look after 2 under 4s). He cannot afford childcare on 1 salary and hasn't got time to find suitable childcare. Also what childminder or nursery takes kids now and
then on an ad hoc basis?
If his wife dies there will be no life assurance, there will be no death in service. He will either have to pay for childcare out of his one salary or give up his job.