There are many important financial decisions which every person has to make. One of them is how to provide for the wellbeing of your loved ones in case the worst happens with you. Life insurance is one of the most effective tools for protecting your family financially. If you are married, it is natural to ask yourself whether both you and your spouse should get covered. Here you will find information and advice which will help you to find the answer.
Detailed Contribution Assessment
The best way to make a decision regarding life insurance is to assess the income and non-income contribution which you and your spouse have. The main factor which you need to take into account is employment income. However, it is not the only one. You also have to include benefits which the whole family uses, but which will be lost with the death of one of the partners. These include private health insurance, free child care and other benefits provided by employers.
The non-income contribution is the most difficult to assess, but this part is extremely important. You need to take into account the monetary value of the free services provided by both you and your spouse to the family. These include looking after the kids, cooking, cleaning, gardening and making home repairs. Even if your spouse does not earn any income, but performs most of these tasks, he or she should be covered as well. This is because in the event of his/her passing, you will either have to pay for these services or reduce your work hours to provide them for free. Either way, you will have a smaller disposable income than before. This is the reason why getting coverage is so important.
Coverage Provided by Employers
If one spouse has life insurance provided by their employer, what should the other do? It is perfectly possible for the other spouse to buy a policy from any insurance provider. With comparison shopping, you will certainly find a deal which matches your needs, requirements and budget perfectly.
One very important thing is for both spouses to have a precise idea of the amount of death benefit which they require. If the policy provided by the employer does not cover the employed spouse's contribution fully, extra insurance has to be purchased. Typically, spouses can expect to pay a lower total premium if they buy a policy jointly.
Overall, it is best for both spouses to be covered with life insurance even if one of them does not earn income. You should calculate exactly how much cover you will need.