Why Term Life Works for You and Your Spouse
Let's explore the benefits of having life insurance for you and your spouse, and some scenarios to think through.
Life insurance for a stay-at-home parent or full-time student
If you’re a stay-at-home parent or full-time student, life insurance can safeguard your partner from financial difficulty. You may not be working, but you still contribute to the household in valuable ways. Would your partner be able to carry on while taking financial responsibility for your debts, your funeral and burial expenses, and the cost of caring for your children?
Your partner might be forced to hire childcare or additional help to keep your home running smoothly. They may need to pick up extra hours at work to make up for their increased living costs, taking away time from the kids. Life insurance can cover these basics and more, supporting your family financially during a difficult time.
To calculate how much life insurance to get for your spouse, consider your rent or mortgage, debts, lost wages, and the educational needs of any children you support or may have in the future.
Life insurance planning for couples without kids
If you plan to start a family soon, purchasing life insurance may be a wise move. Life insurance for both spouses can support the surviving partner and future children.
If one or both of you have significant credit card bills, a mortgage, car payments, or student loans, it may be a good idea to purchase enough life insurance to pay off those debts. To help determine how much life insurance to purchase for each partner, you’ll need to calculate the potential financial impact that death would cause for the other. How much money would it take for each of you to feel financially secure without the other?
If you are responsible for the financial needs of anyone outside your household, you may need to provide an insurance benefit for them, as well. Your dependents could include elderly or disabled parents and extended family members.
Your employer-sponsored life insurance may not be enough
If you're thinking about getting life insurance for your husband or considering life insurance for your wife and think their employee benefits package has them covered, you may want to look closer at term life insurance plans for couples.
Employers may offer life insurance as a perk, but drawbacks may exist if you depend solely on this policy. Employer-provided plans typically cover only a fraction of the financial needs you have, and they often don't travel with you if you leave the company. Consider additional coverage, such as a relatively inexpensive term life insurance policy that's independent of your employer. A plan with a low monthly premium can help ensure that you have sufficient coverage during your wage-earning years, regardless of your employee benefits.
Rates for all types of life insurance increase as we age. If you develop a critical or chronic illness in the future, the cost of purchasing life insurance may be too high. You could even become uninsurable because of your health. If you already have a life insurance policy in place when you become ill and you keep paying the premiums, you’ll be insured while the policy is active and in force, no matter how your health changes.
Taking your next steps
Applying for term life insurance with Ethos is a simple way to help protect your family's financial future. Explore the quick and straightforward steps in the Ethos application as you and your partner invest in your future.