This is a question we get often when speaking about life insurance coverage. Years ago, it was believed that only the bread winner would need life insurance coverage. However, this train of thought doesn’t take into account the value both people contribute. How would your family function without both contributions to the family? Things like childcare and house cleaning are contributions that are often forgotten about or overlooked. Even without children in the picture, there are still bills to pay, errands to run, meals to cook and everything else. So, do both spouses need life insurance? The answer for most people is yes.
Joint Debt
In short, both spouses should carry life insurance to ensure that if anything were to happen to either one of you, your family would be covered. The amount of which you need to take out is what differs. As a married couple, any debt (car loan, mortgage, credit card, etc.) will be held jointly. If something were to happen to both or one of you, you both need life insurance to cover your jointly held debt.
Protection for the Loss of Income
As for using life insurance as the protection for the loss of income, there may be a difference in the amount each spouse may need to purchase. 45% of women don't have a life insurance policy. Those that do have a policy have coverage that is 22% less than a man’s according to Forbes 2023. When assessing the loss of income, remember the hidden contributions that would create new costs like childcare, house cleaning, etc. Check out our life insurance needs analysis for a good starting point.
Protection for Years to Come
Remember that when you are purchasing life insurance you are buying coverage for the next 20 or 30 years and not just for the situation today. One of our agents at Harmoning Agency will help you assess your current and future needs to review how much life insurance coverage will be appropriate for your spouse and you. We believe you should know what you are buying for insurance coverage. Contact us today to get started!