Life Insurance Isn't Just For The Working Spouse

When thinking of life insurance cover, most people tend to think about a policy for the main income earner, or breadwinner. But there can also be reasons why it pays to insure the non-working spouse.

When any partner in a relationship dies, there is enough to take care of without the added stress of financial burden.

While the working spouse (who often has life insurance) might be the one that brings in the income to pay the debts, it’s generally the non-working spouse that provides the back-end support to allow that to happen.

If a non-working spouse dies without life insurance cover, the working spouse may find themselves in the position of having to take a lower-paying job so as to enable themselves time to take care of any children from the relationship.

Even an initial few weeks’ leave following the funeral may present an unaffordable burden not to mention ongoing (Mortgage repayments, school fees, and other general household expenses).

And if the working spouse needs to maintain their career position so as provide enough income to cover existing debts, will they be earning enough to pay for previously un-needed, or additional, child care?

The working spouse may also require general domestic help so that they can spend quality time in their non-working hours with their children, rather than struggling with the household chores.

Loss of a spouse is something most people don’t like to contemplate, especially when children are involved.

But loss of a non-working spouse can be just as financially challenging as the loss of a working spouse, so it pays to consider investing in the protection of suitable life insurance cover for both parties in the relationship.

May 2008

Disclaimer:

The information provided is general in nature and does not take into account your particular insurance needs, financial situation or investment objectives. We recommend that you speak to an xLife risk advisor before you make any decision regarding life insurance.
xLife Pty Ltd ASIC No. 305213 is a Corporate Authorised Representative of Milennium3 Financial Services Pty Ltd.
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