• 15
  Feb
  2010

• Is Term Life Insurance Necessary for the Unemployed Spouse?

  
  Filed Under: Blogging
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Many a time, term life insurance, especially for expatriates, is fraught with many questions: Do I really need it; I’m only abroad for a couple of years? How much should I get term life insurance for? How long should the insurance be for?

One of the questions that is usually glossed over when purchasing term life insurance is usually: Who gets insured? It is assumed that insurance is only for the primary breadwinner of the home, so that his/her absence will not affect the financial status of the family much.

However, it is important to think about the value of the work that the other spouse does at home. Let us say he/she takes care of the home and the children. When he/she passes on, there will now be extra costs in terms of childcare and household work, for which people may need to be hired.

This care can run into thousands of dollars a month, and so, it is important to remember the financial impact of the demise of both the employed and the non-employed spouse at home. Also remember that term life insurance is cheaper than whole life insurance and works well for periods in life where debts are maximum.