Should Both Partners Have Life Insurance?
It’s a question that always comes up. You’re married; you may, or may not have children. One of you has life insurance, but which one should be insured? Is insuring both of you a waste of money?
This then leads to the question of - do both partners in a marriage really need their own term 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, even if it’s only just the two of you!
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 earns a salary (and the other is a stay at home parent for example), the person earning 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
You both support the family, even though it may be in different ways. One partner may be a stay at home parent, spending hours maintaining the home and looking after children. The dollar value of this task alone would be quite high if that particular spouse were to 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.
Every responsibility you and your partner manage has a dollar value. 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 either of you have a family history of serious illness or life changing medical conditions, 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 if you became disabled. Without it, that disability 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.
If you need help deciding which life insurance policy is best for you and your partner, contact xLife today for free Life Insurance Quotes. We may be able to offer an additional discount if both partners purchase their life insurance policy from the same life insurance company.
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save up to 20% on your first year’s life insurance premium.
February 2010
