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Does my spouse need life insurance if he or she is not working?

When a spouse is the main breadwinner, it is obvious why the person needs life insurance to protect the family. But a home spouse also needs life insurance. Just because a person does not work in a paying job does not mean that he or she has no financial value. Think about what it would cost to pay another person for the services that a housewife provides to your household!

Why buy life insurance for a home spouse?

Most spouses who do not do the work of a paying job provide a wide range of services for the family. They tend to take a leading role in child care, cooking, cleaning and several household chores and errands. In a family with two young children, a stay-at-home mom and a dad who works to support the family, how much would it cost to cover the services the mother provided if she died suddenly? According to care.com the nationwide average rate for a nanny is $ 1

5 per hour. At 40 hours a week, that's $ 31,200 a year. And childcare services often require more than eight hours a day or 40 hours a week. When a home spouse dies, the surviving spouse may have to pay someone for cleaning, cooking, transportation, and other services, which can provide a significant amount over time.

The loss of a home-mate can also limit the career opportunities of a surviving parent of young children. This can have major financial consequences for the family. Death benefits from a life insurance policy can help alleviate the burden.

How much life insurance does my home spouse need?

Life insurance needs can be difficult to determine for someone earning an income, and even more so for someone not working in a paying job. A general rule of thumb is to multiply your annual income by 10. This approach does not work for a housewife who does not earn an annual income. However, life insurance is designed to do more than compensate for lost income. The purpose is to protect those you leave behind from financial difficulties.

Factors to consider when determining how much life insurance you should buy for your non-working spouse include:

  • How many children you have
  • How much the bread-winning spouse earns
  • The age of your children 19659010] Cost of living in your area
  • How long you want the life insurance cover to remain

When calculating life insurance needs, one method is to consider how much money your spouse would need to bring in the event of your death. This amount should include long-term financial goals, such as sending children to college, as well as daily living expenses. Since the amount is likely to increase if the bread-winning spouse dies, the housewife may need less life insurance. Our friendly agent can review your life insurance needs with you and your spouse to help you decide how much to buy.

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