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Should Both Spouses Carry Life Insurance?

Posted On Jan 27, 2022

When you have made a commitment to your spouse to always be there, that can also mean financially.

You may be newlyweds, or you may have spent a lifetime together. You eat together, live together, maybe you have children together. 

Whether one or both of you work, are retired, or a combination of the two, you are most likely reliant on your partner for more than just emotional support. If the unexpected were to happen and one of you is left to navigate life on your own, it can be both emotionally and financially devastating. While there are some situations where you may not need a life insurance policy for your spouse, let’s take a look at some of the reasons why you would. 

If One or Both Spouses Are Still Working

It may be easy to understand that the spouse who earns the main source of income should carry life insurance. If that spouse were to pass, it could leave their partner in a difficult financial position. You may think that if you haven’t contributed any income to the relationship, or if you are retired, you don’t need a life insurance policy, but this isn’t necessarily true. For instance, if you’re a homemaker, it’s estimated that your services are worth upwards of $178,000 per year. In the event of your death, a life insurance policy would give your spouse the resources to hire outside help in an effort to replicate all of the valuable support you provided during your life together.

If Either Spouse Owns a Business

Owning a business comes with a lot of responsibility and oftentimes, debt. In this case, it’s important for the business owner to carry a life insurance policy. Insurance on the owner can help ease the transition for the surviving spouse and give them time to pay off expenses or sell the business. But what happens when the spouse who passes isn’t the business owner? In the event of your death, your partner may want to take an extended leave from work for bereavement. To keep the business afloat during this time, it is important that both spouses carry life insurance.

If Someone Has Co-Signed on a Loan for You and Your Spouse

At some point in your life, a close friend or relative may have co-signed on a loan for you and your spouse. What happens to that debt if you happen to pass? All parties on the loan are responsible for repayment, so you may be leaving more than one person on the hook. Acquiring a life insurance policy for your spouse or partner may ensure your portion of the debt can be paid, leaving one less thing for your loved ones to worry about.

If You Don’t Have Sufficient Savings to Cover End-of-Life Expenses

Whether or not you’re both working, the death of a loved one can leave the remaining spouse with the inability to cover end-of-life expenses. With the average funeral cost ranging from $7,000 to $12,000, it’s prudent to make sure you leave your family with the funds to ease the burden. This is also true for any potential final medical expenses. If you and your partner do not have the money to cover both of your end-of-life costs, it may be worthwhile to purchase additional life insurance.

If You Have a Mortgage or Other Unpaid Debts

This is probably one of the most important reasons to purchase life insurance policies for both spouses. If you are still paying off your home, or you have other unpaid debts, repayment will fall solely on your partner. The loss of a loved one can be heartbreaking enough, but losing your home and being financially unstable can be absolutely devastating. Another great reason to make sure you have the coverage you need and the peace of mind you want.

To Provide Additional Funds for Beneficiaries

Say you have enough in savings to cover end-of-life expenses and all of your debts combined. You may still consider having a life insurance policy for your spouse in order to leave a little more for your beneficiaries. Maybe you want to contribute towards a college fund or leave behind a legacy for your children. Either way, purchasing life insurance will give you the flexibility to choose how you would like your funds to be dispersed and how much you would like to give.

Talk to an Americo Senior Life Insurance Agent Today

These are just some of the reasons why you should purchase life insurance for your spouse or partner. Maybe you’re ready to act now, or maybe you have more questions you need to ask. Americo Senior Life is dedicated to helping seniors get the coverage they need, at an affordable price. With no medical exams required* and permanent protection with rates locked in for life, Americo is here to help. Contact us today or visit our life insurance FAQ section, and start working towards a brighter and more secure tomorrow. 

*Issuance of policy may depend on answers to medical questions