I heard a radio commercial for life insurance on the way to work this morning. A woman was saying how she had been so worried about what would happen to her and her kids if her husband died. Well she called and got a quote and can get a $250,000 policy on him for $17/month. Now’s she’s happy because she’ll be OK financially if he dies.
I wonder how much insurance the husband referred to above is carrying on her? Or if she works, how much does she carry on herself to help him out if she dies. He’d need to pay for a funeral and then going forward would have increased child-care costs and maybe need to pay for some extra help around the house (cleaning,laundry, etc). It was pointed out to me how typically women won’t take out insurance on themselves. For a time, my wife and I worked for the same company, and while we worked in different departments we had equivalent positions and salaries, so we contrubuted equally to household income. The company offered a default 1 year’s salary life insurance policy at no-cost to the employee as a benefit. You were also able to purchase (pre-tax) the equivalent of 4x annual salary policy, so that functionally you had a 5x annual salary benefit. As a father a 2 children, I ofcourse opted to get as much coverage as possible so I did just that. Meanwhile, my wife did not opt to get any additional coverage, and just had the default 1x coverage.
I found out about this when she resigned to stay home after the birth of our third child and I was saying how maybe I should get a policy on her through work or possibly through our home insurance agent and was wondering about how much would be appropriate. I didn’t immediately react to her telling me that she hadn’t thought that protecting my financial future (and the kids) was worth $20/month, but it has been something that’s been niggling around in the back of my mind, and it what it says about how she views our relationship doesn’t make me happy.