Should a Stay-at-Home Spouse Carry Life Insurance?
Having life insurance on the largest breadwinner in the family is pretty much a no-brainer. After all, should something happen to that person, a significant amount of the family’s income will be lost. Not only will there be debts and final expenses to pay, those left behind will be left to struggle living on an income that is much less.
But what about a spouse who only works part-time or who is even a stay-at-home spouse? Should they carry life insurance?
The answer is yes, but it may be a bit more complex than you think. The loss of a spouse, even one whose primary job is staying at home, will have both short-term and long-term impacts. Here’s a closer look.
Immediate, Short-Term Expenses
Working outside of the home or not, the loss of a spouse will create short-term, immediate expenses that will need to be taken care of. There may be medical expenses, personal debts, college loans and, of course, funeral expenses. These can easily climb into the thousands, if not tens of thousands, of dollars. Unless your family has sufficient savings and equity, this loss can result is significant changes to your finances and future lifestyle.
Besides the short-term, negative financial impacts from losing a spouse, there are longer-term implications that should be considered. Even if a spouse did not provide a significant amount of income to the family, they have likely provided other valuable services. Stay-at-home spouses frequently take care of the cleaning and laundry. They may cook meals, shop, pay bills and perform lawn work. They may take care of routine repairs and upkeep. For many families, stay at home spouses serve as the main provider of child care, with some performing home-schooling. These are all valuable services that will need to be replaced should they pass. Life insurance can help accommodate for these losses.
Spouses bring value to a relationship in many ways. While it is perhaps easier to place a value on income, it is important to recognize the other skills, talents and services spouses who don’t work outside of the home provide. It is critical that life insurance is carried on both players in a relationship, especially when children are involved.
Let our independent insurance professionals help. Let’s discuss your family and your needs and goals. We can show you just how affordable life insurance can be and how it provide a significant amount of peace of mind. Contact us today to solidify your future tomorrow.