To put it simply: life insurance is important for many households, including those where both partners have an income. Your family and household are accustomed to living with both incomes, and losing one could impact your financial stability. Having life insurance as a dual-income family can help to pay for funeral costs and can help to offset the lost source of income as your family adjusts.
Not having enough or any life insurance coverage isn’t just an inconvenience—it can be a devastating blow to loved ones in the event of your passing.And while no one likes to think about the facts surrounding death and the aftermath on families, the statistics speak for themselves, indicating that scores of people are left suffering because of inadequate financial safety nets. For example, 5% of U.S. kids lose a parent before age 15, and 70% of U.S. families go bankrupt within 3 months of losing the breadwinner.
The question many people in a dual-income household ask is whether both breadwinners really need life insurance policies. While life insurance may seem like an optional add-on, there are good reasons why it’s essential:
When it comes to deciding on how much life insurance is appropriate, a good rule of thumb for each breadwinner to follow is to choose a plan that covers at least 10 times their annual income. Many will then add on an extra 15-20% of that income to account for the costs they may each leave behind and any remaining costs of shared debts and financial obligations. These can include your mortgage or rent, car payment, bills, utilities, childcare, and/or education.
While there’s no need to panic about your financial planning, it’s worth knowing that the earlier in your life you apply for life insurance, the lower your rate tends to be. However, life insurance is a great idea at any age, so if you haven’t applied yet, there’s no reason why you can’t put the wheels in motion now.
When it comes to deciding on the type of life insurance that’s appropriate for a dual-income household, understanding the options is important. Term life insurance is a great choice for a two-income household because it’s set for a specific period of time. Here at Ethos, we offer terms from 10-30 years and coverage options ranging from $100,000 to $1.5 million. Dual-income households typically choose a term length that can protect their family’s needs for the number of years which they each expect to support their family. Term life insurance is a good option for many dual-income households because it allows you to protect your family until they’ve become self-sufficient, without opting into a policy for life.
Ready to get started on the application process? Visit ethoslife.com today and get a personalized quote that will put you one step closer to securing the financial future of your beneficiaries.