Reena and Amit are a happily married couple. Before the birth of their daughter Kashish, Reena was working as an assistant manager at an HR recruitment firm. However, post the birth of Kashish, Reena and Amit mutually decided that one of the parents would spend more time in nursing and caring for their kid. They both supported each other not only in life’s major decisions but also when it came to managing household chores. If Reena would cook, Amit would do the dishes. If Reena would manage the grocery shopping, Amit would manage the laundry.
Just like Reena and Amit most couples complement each other. In a partnership, duties are often relegated to a specific person. These duties become a part of you and your spouse’s life routine. And if we asked you who plays an important role, you’d probably respond that both are equally crucial.
Many of us feel that neither of these duties are dispensable or easily replicated – that’s why it’s called partnership. Despite that fact, that the life insurance for stay at home spouses is rare. Generally, a stay at home parent will rely simply on their spouse’s group life insurance policy.
Perhaps the reason for this is that the conversation around buying life insurance generally revolves around assets and net worth. Insurance agents want to know how much money you make, what your investments look like and what assets you have. These questions, though critical to the process, don’t capture the full picture.
Let’s reframe life insurance to include value, not just money.
Stay at home spouses provide a value to the household that can barely be quantified (even though some have tried). However, since the work these spouses do to keep households running isn’t defined by a number, but rather a feeling, it’s often left out of the life insurance conversation. Insurers, and thus policyholders, think in terms of replacing the money we’d lose not the quality of life we’d be left without. Here are a few reasons we think both spouses need life insurance, regardless of whether one stays at home or both work.
You manage the household.
For stay-at-home moms or spouses, you should consider the value that you add to run all household activities. Childcare costs, housekeeping fees, and other expenses should be taken into consideration when deciding whether you should buy life insurance for yourself and how much coverage will be needed. It’s important to remember that just because you aren’t earning a salary doesn’t mean you don’t still provide a quantifiable monetary value to the family.
It’s equivalent to a job
In addition to the income they bringing in through your job, both spouses also likely provide additional tangible benefits to the family through the work they do at home. If you provide a secondary income, consider what household duties would go un-managed, or be difficult for your spouse to maintain, if something were to happen to you. If you’re relying on both your salaries and the work you do around the house to make ends meet each month, then a disruption to either of your salaries would likely cause your family financial crises. Have the conversation with your spouse about how life insurance could help to protect you both.
Whether you’re considering life insurance for a stay at home spouse or buying a policy for both partners, you can get started by analysing your need and understanding complete details about a term insurance plan.