Protection for Non-Working Spouses and Children

Author - Nathan Gonsalves-Williams

When most people think about protection planning, the focus is often on the family’s main earner. After all, they’re the one bringing in the income, right?

But after advising individuals and families for over a decade, I’ve come to realise there’s a major blind spot in many protection conversations. Around 75% of the insurance claims I’ve been directly involved in were not due to the policyholder becoming ill or dying — but because someone else was affected. Often a non-working spouse, a child, or even a member of the extended family.

Their contribution might not appear on a payslip, but its value — both emotional and financial — is significant. And protecting that contribution is just as crucial.

The Hidden Cost of Care

I often reflect on everything my wife does to support me and our two young children. She balances part-time work as a teaching assistant with caring for our family, and we occasionally lean on grandparents for support too.

If something were to happen to anyone in our family bubble — illness, injury, or worse — we would face more than emotional loss. The practical and financial consequences could be overwhelming.

Replacing that care could cost thousands each month. From childcare and housekeeping to providing emotional stability for our children, it’s a role that’s both irreplaceable and expensive to outsource. And it wouldn’t just increase costs — it could reduce our earning potential if either of us had to step back from work.

Why Children Deserve Protection Too

It might seem unusual to consider protection for children, but as any parent knows, life can be unpredictable.

If a child were to suffer a serious illness, one or both parents would likely need to take extended time off — or even leave work altogether — to provide care. Employers rarely offer long-term support in these situations, and even the most understanding manager can only offer so much flexibility. For business owners, the impact can be even more significant.

I've spoken to many families where a sudden drop in income, combined with mounting costs for travel, treatment, or therapy, has caused serious financial strain. Thankfully, there are solutions. Many critical illness policies allow child cover to be added. There are also stand-alone child protection options — often shaped by the lived experiences of families who’ve been through the worst. I’ve heard many such stories. Beyond my own experience, they’re part of what continues to shape my advice.

A Real-Life Example

Last year, I worked with a client who initially came to discuss retirement planning for his new business. During our review, I identified a key gap in their financial plan — neither he nor his wife had any critical illness cover.

We went on to arrange two policies, each of which included child critical illness cover. Just weeks after the cover was in place, their daughter was diagnosed with Acute Myeloid Leukaemia following routine blood tests.

Because of the foresight in planning, the family was able to claim £25,000 on each policy — a total of £50,000 — while keeping the cover active for future protection. He later told me how grateful he was that we had addressed this area when we did. Without that support, the financial pressure would have compounded an already devastating situation.

That experience had a profound impact on how I advise clients and the way I approach protection conversations moving forward.

Redefining What “Protection” Means

I always encourage clients to think beyond simply replacing income. Protection is about maintaining stability — ensuring your family can continue functioning during a crisis and avoiding unnecessary stress at an already difficult time.

That might mean building a financial buffer, talking openly with extended family about support plans, or putting key documents like wills and Lasting Powers of Attorney in place.

But when the financial implications of illness or loss would be significant, the right insurance can change the entire trajectory of your family’s future. I’ve seen it happen. The return on investment isn't just measured in money — it’s the ability to pause, recover, and continue life with dignity.

Final Thoughts

I completely understand the hesitation around paying monthly for something you hope never to use. At times, even I question the cost of our premiums. Can we afford to pay for something we may never claim on? Could those funds be put to better use elsewhere?

But we protect what we value — and the role of a spouse, parent, or the wellbeing of a child is surely among the most valuable things of all.

So, the real question becomes: can I afford not to?

As always, financial products should be reviewed carefully in line with your individual needs and objectives.

Will writing and Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James's Place and are not regulated by the Financial Conduct Authority.

Please note that Critical illness plans do not have a cash-in value and will stop if payments to them cease.