Spousal Insurance
One of the most overlooked needs for life insurance is coverage for a non-working parental spouse. In the past, this form of insurance has been referred to as "wife insurance". However, with the increasing number of stay at home dads, this need no longer applies to just women. If the wife is the family's sole breadwinner, the same rules apply as for insurance on a husband breadwinner.
A non-working spouse's economic value is often overlooked. This is particularly true when he/she is caring for small children. To replace these services maids, baby sitters, and other persons may need to be hired to provide the minimum of essential services and the cost would be staggering.
An example of a strategy for obtaining proper coverage would be to buy an annual renewable term or a level term policy in order to help the family financially in the event of a sudden death of the stay at home mom or dad.
Of course, this brief article is no substitute for a careful consideration of all of the advantages and disadvantages of this matter in light of your unique personal circumstances. Before implementing any significant tax or financial planning strategy, contact your financial advisor, attorney or tax advisor as appropriate.
By W. Barton Close CFP®
Certified Financial Planner Board of Standards, Inc.,
owns the certification marks above, which it awards
to individuals who successfully complete initial and
ongoing certification requierments.