If you have recently gotten married or had a baby, you may be looking into purchasing life insurance for both yourself and your spouse or partner. One of the questions that we at Phil Klein Insurance Group are often asked about life insurance in the greater West Bloomfield, MI area, is whether spouses should have the same amount of life insurance coverage. In most cases, they need different amounts. Here are a few of the factors that are looked at when determining how much life insurance each spouse needs.
How Much Each Spouse Makes
One of the factors that determine how much life insurance each person should acquire is by determining how much they earn. If you make more than your spouse, you will need more in life insurance than your spouse does. This helps to make up for your lost income should you pass away.
The Amount Of Debt for Each Spouse
In addition to your current salary, you should also look at how much debt each person has. If you have student loans or other types of debt, you need more life insurance. This allows your spouse or partner to pay down the debt without the burden of having to cover your debts themselves.
What Household Chores Each Spouse Performs
The last factor that should be considered is what household chores each spouse performs. If these chores would be a burden for your partner, you want to have enough life insurance to cover the cost of hiring someone. For example, you may watch your kids while your wife works. If you were to pass away, she would need to hire childcare. Likewise, you may do all of the yard work and car maintenance. If you were to pass away, she may need to hire someone to complete these tasks, which should be accounted for in the amount of life insurance you have.
If you are looking to purchase a new life insurance policy for you and your spouse or partner in the greater West Bloomfield, MI area, turn to Phil Klein Insurance Group. Call us now to have your questions answered and to get a quote on your insurance policy.