Does My Spouse Also Need Life Insurance Coverage?
Wondering whether or not your spouse also needs life insurance coverage?
If so, you’re certainly not alone. In fact, this is probably one of the most common questions you will comes across when it comes to life insurance.Typically, it is advisable that any spouse that is earning an income should seek coverage.
So, does that mean stay-at-home parents should skip out on a policy altogether? After all, without a direct income coming in, there’s no point in investing in a policy, or is there?
Expenses to Consider
While investing in a life insurance policy for a spouse that is a stay-at-home parent might not seem worthwhile initially, consider the following:
Did you know that the average childcare costs in the U.S. are up to $11, 666 annually? While this may not seem like such a large figure initially, it actually equates to roughly $972 per month, nearly a thousand dollars. So while stay-at-home parents might not provide an income in the form of a paycheck, there are providing it through their service.
Home care Expenses
In addition to providing childcare, the vast majority of stay at home parents also provide home care services. Tasks such as cleaning the dishes, taking out the garbage, mopping, vacuuming, etc may seem more like household chores than expenses. However, when it comes to life insurance, these tasks are absolutely expenses that must be taken into consideration.
General Living Expenses
You will also want to account for general living expense as well. For example, any housing costs or transportation costs should be factored in. Small tasks such as driving the kids to school may not seem like much, but they can add up over time. Remember, even if these are not seen as “costs” by your family, they should be factored in accordingly when it comes to life insurance planning.
The takeaway here? While stay at home parents might not be bringing in income in the form of a check each month, they are providing services with a monetary value, services that need to be accounted for in the event of your spouse’s passing. Investing in even a small policy can help to offset these financial obligations if the unthinkable were to occur.
How Much Coverage?
Just how much coverage should you buy? Again, this will be primarily dependent upon your expenses and the needs of your family along with your age. For examples, those with young families are likely to need more coverage than those with children getting ready to head to college. While there is no magic formula here, to get the best idea of how much coverage you need, factor in your total expenses along with your total income. In addition, try to break these costs down by month, it will give you a much clearer picture of what you are actually working with.
Where to Find Coverage?
Once you have a better idea of just how much coverage you will need, it is time to start shopping around for the best policies and the best rates. Each policy and provider is unique, so you will want to make sure to explore your options thoroughly first before settling on a final option.
How to get started?
If you would like to begin comparing term life insurance quotes now, we have some great news! (and no, you won’t need to spend hours searching through providers online struggling to decipher life insurance jargon) With TermLifeInsurance.com, searching for the perfect life insurance policy got even easier.
Best of all, you won’t even have to leave the comfort of your own living room to get started.
So, what are you waiting for?
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