Does my wife need life Insurance too?

May 25, 2020

Believe it or not, I've come across this question on several different occasions! There are so many components; Is one spouse's life insurance policy enough, or should both of you get policies? Is life insurance on my wife even necessary if we are only in our 20's? What if we don't plan to have any children? And the list of questions can go on and on.

Now statistically speaking, women do live longer than men, so why purchase a life insurance policy for your wife, right? Not exactly. Although this statistic stands true, you are exposing yourself to a significant risk. So the first big question you want to ask yourself is, "am I willing to take this risk?"

I can't tell you how many times I've sat down at the table, and the husband is hesitating to take out a policy on his wife. Hesitation only tells me one thing. The two of them never really had the conversation of, "if anything were to ever happen to either one of us, would the other person still be financially sound?" You'll be surprised how many couples do not have these types of discussions, which could lead to a disastrous future.

When it comes to being financially sound, purchasing life insurance for both parties is something you'll want to consider highly.

The next big question you may be thinking right now is, "well, how much life insurance coverage should my spouse and I own?" There's no correct answer to this. It all comes down to your monthly budget, how much money would your wife need to cover all of the day-to-day costs of living (rent, mortgage payments, childcare costs, etc.)

When it's all said and done, you should think about the kind of life insurance benefit you'd like your family to receive in the worst-case scenario. Explore protective options that precisely provide the amount needed to fill any gaps and work with an advisor to find an affordable option.

This is not intended to be legal advice. Each state has different laws governing estate planning. Please contact a qualified attorney for further information about Estate planning or schedule a consultation here with one of our partnering professionals.