Q. I want to buy a Term insurance for my stay-at-home wife who has no income. How much coverage can I buy for her?
A. Generally, most insurers allow 50% of what a working spouse has in force. For example, if you have $1M life insurance in force, then non-working spouse would be eligible for $500K coverage.
However, it is possible for a non-working spouse has higher coverage, in order to obtain that, the client will be required to submit a written letter explaining the need for the requested face amount on the non-working spouse. Such needs could be mortgage, day care for the kids, school expense for the kids, etc. The final decision will be made by the insurer.
A. Generally, most insurers allow 50% of what a working spouse has in force. For example, if you have $1M life insurance in force, then non-working spouse would be eligible for $500K coverage.
However, it is possible for a non-working spouse has higher coverage, in order to obtain that, the client will be required to submit a written letter explaining the need for the requested face amount on the non-working spouse. Such needs could be mortgage, day care for the kids, school expense for the kids, etc. The final decision will be made by the insurer.
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