The Little Known Facts About a SAHM’s Ability to Buy Life Insurance

Raising a Family

Did you know that stay at home moms (SAHM) or stay at home dads can actually buy life insurance even if they are not earning an income? I think this may not be a widely known fact and I wanted to shed some light on the purchasing power a SAHM or stay at home dad actually has.

The chart below shows each insurance company SAHM’s or stay at home dad’s insurance coverage amount maximum guidelines. Those insurance companies highlighted in yellow have specific guidelines for insurance coverage amount maximums, while the others do not. As you can see, there are lots of options to choose from.

While a SAHM or stay at home dad may not be bringing in an income, having to find a way to cover what they do for the household can be costly. Remember, the need for life insurance is just as strong for a SAHM or stay at home dad as it is for the primary breadwinner.

 

CARRIER

 Non-Working Spouse Insurance Coverage Amount Guidelines*

American General

Equal to working spouse’s insurance coverage amount up to $1,000,000.

John Hancock

No specific insurance coverage amount maximum for non-working spouse. Individually underwritten based on household income.

Lincoln Financial

Equal to working spouse’s insurance coverage amount.

MetLife

Insurance coverage amount inforce or applied for between

$0 - $125,000: No requirement for a specific coverage amount on the working spouse.

 

Insurance coverage amount inforce or applied for over $125,001:

Coverage needed on working spouse is an equal amount.

Nationwide

No specific insurance coverage amount maximum for non-working spouse. Individually underwritten based on household income.

Principal

Equal to working spouse’s insurance coverage amount.

Protective

No specific insurance coverage amount maximum for non-working spouse. Individually underwritten based on household income.

Transamerica

No specific insurance coverage amount maximum for non-working spouse. Individually underwritten based on household income.

United of Omaha

Equal to the working spouse’s insurance coverage amount up to $1,000,000.

Voya

No specific insurance coverage amount maximum for non-working spouse. Individually underwritten based on household income.



       *Based on insurance carrier data as of December 15, 2014

About the author:  Michele Cleary has been in the business for over 35 years and holds a CLTC designation. She believes that life insurance can give you and your family peace of mind, especially when you have other things to worry about. Michele now has 4 grown children and knows that proper planning is essential. You can reach her at 1-800-651-1953 or MCleary@Pivot.com.