An Unexpected Answer For Some
It’s fairly common knowledge that for a couple, where one person is the sole breadwinner, they need a life insurance policy so their partner can continue paying for expenses in the unfortunate event that their spouse passes away. What about the stay-at-home spouse; do they need a policy as well?
The answer is a resounding yes, and here are a few reasons why.
1) Cover your spouse’s burial costs.
Funerals can cost upwards of $7,000. Sometimes it can be very difficult to find that sum of money when it’s needed. A life insurance policy on both partners can help ensure the money is there to cover funeral and burial costs.
2) Minimize stress during grieving.
Losing your spouse is a traumatic event. The last thing anyone needs at that time is financial stress added on top of the emotional burden. Having a life insurance policy in place can help ensure that the surviving spouse is able to focus on moving through the grieving process naturally and at their own pace.
3) Reduce or eliminate debt.
Related to the above, the last thing a grieving partner should be worrying about after losing their spouse is addressing outstanding debts and obligations. A life insurance policy on the stay-at-home spouse can help reduce or eliminate the debt load on the surviving spouse and free up money and head-space to grieve, take care of surviving children, and other essentials.
4) Pay off medical bills.
If you or your spouse needed any medical care prior to their passing, this could leave the surviving partner with large unpaid medical bills that their income may not be enough to cover. Having a policy in place before your partner falls ill allows you to pay off debts that accumulate as a result of their medical bills.
5) Cover child care and other responsibilities.
If the stay-at-home spouse was taking care of children, transporting them to sporting events, cooking meals, and performing other tasks around the house, the costs of outsourcing those things can be tremendous. It’s often more than the surviving partner can bear alone. Having a policy in place can help meet the increased financial needs that come with paying others to perform daily household chores.
6) Cover the cost of elder care, if your spouse was taking care of aging parents.
Often, a stay-at-home spouse will take care of aging parents, who may not be in a position to get by on their own. Should that individual pass away, the parents will still require support. Funds from the death benefit of a life insurance policy can be used to cover the cost of care of elderly family members.
7) To help pay for your child’s college education.
Proceeds from a life insurance policy can go toward ensuring your children are able to graduate from college debt-free, providing further peace of mind to the surviving spouse.
8) To provide a buffer in the event of unemployment.
Life has a way of throwing unexpected events at us; in the event of unemployment, the surviving parent may find themselves facing the increased costs associated with child and elderly care, with no paycheck with which to address those costs. In that event, they may be forced to dip into their retirement savings – or worse, to take on additional debt – unless they had a policy in place on their significant other prior to their passing.
Getting life insurance is one of the most efficient, reliable ways to guarantee that the surviving spouse has the funds needed in the tragic event that the stay-at-home spouse passes away unexpectedly. If you haven’t already done so, now is the best time to take out a new policy – as you grow older, the prices for new policies increase significantly.
Contact us to learn more.
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This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice.
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