Boost Sales: The Essential Role of Life Insurance for Non-Working Spouses

By Alan Friedman

When people think about the need for life insurance, they usually only focus on the “breadwinner” of the family—the individual whose income supports the household. Unfortunately, the importance of life insurance on a non-working spouse is often overlooked. The true value of a non-working spouse goes beyond monetary contributions and encompasses the vital roles they perform to ensure that the household is functioning smoothly. Life insurance on the non-working spouse is added layer of protection to a family’s financial security. 

Here is some food for thought:

Unpaid Labor Does Have an Economic Value

A non-working spouse often undertakes a range of unpaid tasks, such as childcare, housework, cooking and managing household affairs.  These tasks do have an economic value and, if outsourced, is worth more than $184,820 annually, according to Salary.com. If the non-working spouse were no longer there, the family might need to hire help which can create a financial burden. Life insurance can help cover these costs, ensuring the family can maintain its standard of living.

Stability and Continuity for Children

For families with children, the non-working spouse typically plays a crucial role in their upbringing. The sudden loss of a parent can be emotionally devastating, and the financial strain of replacing their caregiving can add to the distress. Life insurance for a non-working spouse provides a financial cushion that can cover educational expenses, childcare or even therapy, giving the family time to adjust without worrying about immediate financial pressures.

Paying Off Debts and Final Expenses

Life insurance can be used to pay off any outstanding debts or cover final expenses.

Protecting the Breadwinner’s Income

The loss of a non-working spouse might force the breadwinner to reduce work hours or take time off to manage the household or care for children. This reduction in income, combined with the new expenses of outsourcing tasks previously handled by the spouse, can create financial instability. Life insurance can help replace lost income, allowing the breadwinner to focus on their job without compromising the family’s financial well-being.

Providing Peace of Mind

Life insurance for a non-working spouse offers peace of mind for both partners. It is a proactive step in safeguarding the family’s future.

The role of a non-working spouse is invaluable, and their contribution to the household is more than just financial. By obtaining life insurance for a non-working spouse, families can ensure they are protected against the unforeseen loss of this critical support system. It’s not just about replacing income; it is about preserving the structure, stability and security of the family unit.

Did you know that most carriers will issue the same amount of coverage on non-working spouse as the breadwinner up to $1,000,000, with no additional financial underwriting. The next time you request a quote, be sure to include the spouse's date of birth, so we can provide quotes for both.

You might end up selling two policies instead of just one!