Do you and your spouse each have your own life insurance policy? Or does just one of you have a policy? The fact of the matter is that you and your spouse depend on each other, and so does your family. That means that life insurance is not something that only one of you should have, despite the commonly held belief that only the top earner of the household should have life insurance. Both spouses bring something to the table, whether they are the top earner, or they stay home with the children, so it is smart for both of you to have your own life insurance policy, each with the right amount of coverage to ensure that you have enough for your family’s future needs.
Stay At Home Vs Breadwinner
So if you’re asking yourself if one life insurance policy is enough for your family, the simple answer to this question is that if someone depends on you, you should be covered by a life insurance policy. Even if you’re not working, or are staying home with your children, you bring just as much value to the household as the breadwinner: breadwinners help pay the bills, but stay-at-home parents help run the house and provide necessary childcare.
Just consider this: if your family didn’t have the person who runs the household, imagine how much money would need to be spent on daycare alone, not including a maid to clean your house, laundry services, eating out, and more. All of that adds up to thousands of dollars a year that your spouse contributes to the household, and is something that needs to be taken into consideration when looking into life insurance policies.
Whether you work full-time, part-time, or stay at home, you contribute to the house and your family, so you should each have a life insurance policy that fits your family’s needs. Now that you know how important it is that both of you have a life insurance policy, the next thing to figure out is just how much life insurance you each need.
How Much Life Insurance Do You Each Need?
Now that we have established that both spouses need life insurance coverage, you might be wondering how to balance the coverage between the two of you. To figure this out, you should add up all your day-to-day expenses, the cost of final expenses, child care costs, the amount of money your partner and children would need for future plans, and any income coming into the house that will need to be replaced.
Looking at all of this will help you determine what your family will need to stay financially secure should one of you pass away. Remember, too, that the stay-at-home parent can qualify for coverage based on the income of the entire household.
What Type Of Life Insurance Should You Get?
If you’re unsure what type of policy is right for each of you, speak to different insurers, or a life insurance agent. They can consider your individual earnings and determine how much coverage you will both need. Not only that, but they will also consider what type of life insurance you should purchase for your family’s needs. For example, term life insurance is great for a specific duration, such as to cover a 20 or 30-year mortgage. If you need more coverage, a whole life insurance policy is a permanent life insurance policy that will cover you for the entirety of your life or your spouse’s life.
Another option for couples is joint life insurance, which will cover both of you under the umbrella of one policy. It is important to note that these policies are more expensive than term life insurance because they are a type of permanent life insurance policy. You can choose between a second-to-die life insurance policy, which either covers your estate taxes or leaves a legacy for your children after you both pass away, and a first-to-die joint life insurance policy that pays out to the surviving partner after one spouse passes away.
The best way to find the best policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas of how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.