Does Your Non-Working Spouse Need Life Insurance?

Donna Nichols | Nov 24, 2021 | minute read

Does Your Non-Working Spouse Need Life Insurance?Life insurance offers many advantages to individuals and families. Life insurance can provide the financial resources needed when the primary breadwinner income is lost.

You may use the proceeds of life insurance for many reasons including.

  • Income replacement 
  • Helping with the end of life care expenses
  • Paying off your home mortgage
  • Providing for funds to help with living expenses
  • Paying off other debts, such as loans, credit cards, and student loans
  • Providing college for your kids
  • Helping with other obligations, as needed

Traditionally, life insurance was taken out on only the primary breadwinner. Many people thought that the stay-at-home spouse did not require life insurance. But that has changed.

Benefits of Life Insurance for The Stay-at-Home Mom or Dad

Just because an adult family member isn't employed outside the home doesn't imply they should not have life insurance. The stay-at-home spouse takes the primary lead in a number of very important family functions, including caring for children, cleaning, cooking, keeping everyone healthy, being actively involved in school, and sports-related activities. These are skills that are hard, if not impossible, to replace. 

The average cost of a nanny can run $15-$20 per hour, over a year that is well over $35,000. Multiply that expense over several years, and it is clear why stay-at-home spouses need their own coverage.

Free Guide: Why Low Price Insurance May Not Be The Best

How Much Life Insurance is Enough? 

Even for someone with a steady salary, determining life insurance needs is an inexact science, and this is truer for a non-working spouse. When deciding how much life insurance protection is appropriate for the stay-at-home spouse in your family, there are several crucial considerations to consider.

Here are some guidelines to help you decide on the amount of life insurance you may need for your spouse.

  1. Age of all children?
  2. Current monthly expenses
  3. Current saving plan
  4. Cost of living where you currently life or where you may move to
  5. Is there any end-of-life expenses anticipated?
  6. How many years may you require income?
  7. Any other debt or financial responsibilities?
  8. What kind of life insurance product do you want?

A licensed insurance professional can help you answer all these questions and come up with a program that meets your needs. 

You might use the “rule of thumb” and the industry-recommended number of 5-10 times the annual expenses as (listed above) to determine how much life insurance coverage you should get. Remember to get enough coverage to cover funeral costs as well as any debts owed in their name.

When is The Right Time to Consider Life Insurance?

For most people, it's the birth of the first child. 

Insurance broker

Do Spouses Need the Same Amount of Life Insurance?

Not necessarily. How much money would your partner require to cover day-to-day living expenses, cleaning, cooking, and childcare? What about long-term financial objectives, such as paying for your children's college education?

Consider the type of life insurance payout you'd like your family to receive in the event of the worst-case scenario, then hunt for a policy that offers it. 

Type of Life Insurance                

There are many different kinds of life insurance products. Term insurance is the most cost-effective. But here are some of the most common kinds of products:

  • Term life
  • Whole life
  • Universal life
  • Variable life

Life is full of surprises, and not all of them are good. Spend a little time with us putting the right insurance in place so you can be worry-free. We’ll even monitor any changes to policies or your situation throughout the year.

Free Guide: Why Low Price Insurance May Not Be The Best

Cheaper insurance isn't always better insurance. Download our free guide to see what value looks like for insurance products. 

Free eBook | Think Beyond the Price: What good is a low priced policy if it covers what you don't need and doesn't cover what you do? Learn how to find real value - and protection - by reading Why Low Priced Insurance May Not Be the Best. Download.

Leap | Carpenter | Kemps Insurance Agency Can Help

Protecting your family’s future is a big responsibility, but we can make it easier. When you work with Leap | Carpenter | Kemps Insurance Agency, you can rest assured that just like you’ve got your family’s back, we’ve got yours. We offer the most extensive range of life and health insurance options in the region. Contact us today.

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About The Author

Since 2005, Donna has been a Life & Health Benefits Advisor with Leap | Carpenter | Kemps Insurance Agency, where she uses her three decades of insurance experience and knowledge to ensure her clients get the best policies for their budget.

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