How Much Life Insurance Should My Spouse and I Each Have?

Life insurance decisions are often built around the higher earner. That can leave a major gap. Each spouse contributes income, time, care or household work that the other person may struggle to replace alone.

A better plan looks at what would change financially if either spouse died or became seriously ill.

Calculate each spouse separately

Couples do not need identical policies simply because they share a household. Build an estimate for each spouse using the responsibilities that person carries.

For an income-earning spouse, consider:

• How much income the household depends on
• How many years the income would need to be replaced
• Mortgage, debts and education goals
• Health insurance or benefits that could disappear

For a spouse handling more childcare or household work, estimate what those services would cost and whether the surviving spouse would need to reduce work hours.

Do not count resources twice

Review existing life insurance, emergency savings and assets that would truly be available to the family. Be careful not to assume retirement accounts or college savings can cover every goal at once.

The life insurance needs calculator can help organize debts, income replacement and future expenses.

Match the policy to the length of the need

Term life insurance is commonly used for needs with a clear time frame, such as raising children, replacing income through working years or paying a mortgage.

Permanent insurance may fit needs that do not end on a set date, or when a family also wants cash-value features. Policy costs, guarantees and assumptions should be reviewed carefully.

There is no rule that both spouses must buy the same policy type. A family may combine different policies to cover different goals.

Consider protection during a serious illness

Death is not the only event that can disrupt a family’s finances. Some policies include living-benefit riders that may allow access to part of the death benefit after a qualifying terminal, chronic or critical illness.

These benefits are subject to policy terms and may reduce the remaining death benefit. Learn how living benefits may support a family.

Review the plan as life changes

Revisit coverage after a birth, home purchase, career change, divorce, remarriage or major change in income. Beneficiary designations also deserve regular attention, especially when children are minors or a trust is part of the estate plan.

The goal is not simply to own two policies. It is to make sure either spouse would have enough resources to keep the family stable.

Schedule a consultation with Cory for an independent review of both spouses’ needs and options from multiple insurers.

Related family protection guides

• Life insurance for new parents
• Life insurance for a stay-at-home parent
• Calculate how much life insurance your family may need

Watch: How Much Life Insurance Do I Need?

Prefer a plain-English video explanation? Watch Cory explain it on YouTube.

Frequently asked questions

Should both spouses have life insurance?

Many couples benefit from coverage on both spouses because both usually contribute financial or household value. The appropriate amount may be different for each person.

Can one spouse own the other spouse’s policy?

That arrangement is common, but ownership and beneficiary choices should reflect the family’s goals. Ask for legal or tax guidance when a trust, business or complex estate is involved.

How often should couples review their coverage?

Review it after major life changes and periodically as debts, income, children’s needs and savings change.

Related: family life insurance: how to protect your whole family