Should Both Partners Have Life Insurance?
[social_share]You’re married. You have a family. You have life insurance. Does your partner?
Do both partners in a marriage really need their own life insurance? What if only one of you is the sole provider for the family? That’s the only income that needs to be protected, right? Not quite. There are several situations where it makes sense for both partners to have life insurance policies for the financial wellbeing of the entire family.
Here are some things you and your partner should consider before deciding which one of you (or both of you) really needs life insurance, and how much:
1. Income Levels
If only one of you brings in an income (and the other is a stay at home parent for example), the person bringing in that income should have a larger life insurance policy. If both partners earn similar incomes then similar life insurance options would ensure that the family can still support itself if one of you were suddenly gone.
2. Family Responsibilities
Even if you or your partner doesn’t directly bring in any income, you still both support the family. Every responsibility you and your partner manage has a dollar value. Think of it this way. If your partner is a stay-at-home parent, who’s going to take on those duties if they pass away? You would possibly need to hire a nanny, pay for babysitters or day care, or find other child rearing options to make sure your children’s routine was kept as stable as possible. The same is true of cooking, cleaning, yard work, or anything else you couldn’t do alone while still bringing in your own income. A life insurance policy for a non-working partner will help the surviving family members account for those potential increased costs of living.
3. Risk of Serious Illness or Injury
If you or your partner has a family history of serious illness or takes part in activities that increase your chances of serious injury, a life insurance policy might be in order regardless of what your income is. With your life insurance policy you might have the option to add on total and permanent disability insurance. This insurance would pay out (from your life insurance benefits) if you or your spouse are seriously ill or injured. Without it, that illness or injury could put a huge financial burden on the rest of the family if a private nurse or other expenses are necessary but not covered by health insurance. Even if you’re the sole provider and your income can cover the family’s everyday bills, could you also afford those increased medical expenses without some help? Probably not.
The right life insurance policy can do more than directly replace your or your partner’s income in a worst case scenario. Having life insurance regardless of income contribution makes sure you’re both covered and able to maintain your quality of life. People might have a tendency to undervalue the contribution of others, but take the time to put a dollar value on everything you or your partner does for your family. Only then can you decide whether life insurance is right for either one, or both, of you.
