Do You and Your Spouse Need Life Insurance If You Have the Same Amount of Income? This is what Suze Orman said

Image source: Getty Images

It is important to purchase the right amount of life insurance in any situation, including one where two spouses have the same income.


Main idea

  • You may think you don’t need spousal life insurance if the other spouse has coverage but both have the same amount.
  • Not buying life insurance for both spouses is a mistake you may regret — especially if there are children in the mix.

Usually having children is a bargain life insurance. And it’s understandable.

People who are married, for example, but have independent work may think that if their partner dies, they will still be able to go out and earn money. But when children come into the mix, parents often put more weight on life insurance. And that’s not a bad thing.

Now, if you are the sole breadwinner and your spouse is unemployed, you may want to buy life insurance only for yourself, since you don’t have the income to replace it. your wife. (Not that it’s the right choice, but that’s a different issue.) What if you and your spouse have the same amount of money? In that scenario, you might think that only one of you needs life insurance if you don’t need both of them to pay the bills.

Here’s the real idea: Let’s say you and your spouse both earn $80,000 a year, and your family can live on one of your salaries while you save the other. In that case, if you lose $80,000 of your household income, you’ll have less savings – but you’ll still be able to keep the lights on. And that way, you can spend less on life insurance.

But while that idea may be reasonable to some degree, financial gurus Susan Orman it feels different. And he thinks that in the situation mentioned above, it is important for both spouses to buy life insurance, even if they have the same income.

Misconceptions can hurt you

You may think you can get away with only one spouse getting life insurance if both earn the same amount. But what happens if you and your spouse have an accident, and both of you die? Your children are suddenly left without parents — and no income to support them.

One of the biggest mistakes people make when buying life insurance is assuming that something bad will happen to only one of the couple. Unfortunately, you never know when both agents will be affected. And if you have children, the last thing you want to do is put them in a situation where there is no money coming in to support them.

Also, let’s say you and your spouse are equal earners, and you decide to buy life insurance on your own. What if your spouse dies? During that time, you will live, but you will not receive additional income to help pay the cost of living, which may include child support expenses.

That’s why the equation doesn’t really change when it comes to buying life insurance. Regardless of what you and your spouse each earn, you should both put up life insurance. And if you have the same income, you may want to buy the same amount of insurance.

Don’t skimp to save

Some people may undervalue life insurance to reduce their premiums. But if you buy a permanent life insurance policy, you can see that its value is quite simple.

Whole life insurance another story. Whole life insurance can be very expensive, so in that case, it’s easy to see why you might want to insure a single person. But if you choose life insurance instead, it may be easier to pay for the insurance, making it a no-brainer to have two policies.

Our picks for the best life insurance companies

Life insurance is important if you have dependents. We’ve researched the options and created a list of best-in-class life insurance options. This guide will help you find the best life insurance company and the right type of policy for your needs. Read our free review today.

Leave a Comment