My wife does not work. She is a stay at home mother, and we have three small children. Now on the surface, you might think that I do not need life insurance on her, why would I? I bring home the money, I pay the bills, and I take care of our financial needs. So why would she need life insurance?
I have my wife on life insurance, and she were to die, I would recieve one hundred and fifty thousand dollars. Why? First of all, she provides all of the child care. I am not sure how I would pay for child care if I was forced to pay for it. I have three small children, all of them are under the age of seven.
The next thing is, I do not have the money to bury my wife without her life insurance. If something happened, I know she would expect me to have a nice funeral, with flowers, and a nice casket and stone. These things all cost money, and the prices for these things have only gone up as time has gone forward.
The next thing is this, with my children so young, if something happened to my wife, I am sure I would be looking at staying home for six months to a year, to spend time with my children. Her death would be so hard on all of us, and I don’t know about your job but my job will not pay me to not work for six months to a year. This payout would provide me with enough money to stay home with my children. And if my children needed counseling or something of that nature, I would have to pay for that.
There are also costs associated with deaths that we don’t usually think about. If your spouse died would you have to fly her parents out for the funeral? Would you have to pay the local paper to put in an obituary, and perhaps a picture? Would you have to give something to pay the pall bearers? Would you need a new suit, because your old one smells like moth balls and doesn’t fit you any more? Do your children have all black clothing? Do you have a dog that needs to be walked while you are at work? Are you going to have to hire someone to do this for you while you are at work? What if you have lots of medical bills you cannot pay from when your spouse was clinging to life? And could you come up with the money for all of this without the insurance? I couldn’t. That is why it is a good idea to have insurance, even for a non-working spouse.