Category Archives: Personal Finance

Do I need life insurance even if I’m not the bread winner?

life insurance for non-breadwinners

Sometimes life throws a curveball, and sometimes, that curveball comes in the form of tragedy. Now, it’s not healthy to mull over what would happen to our loved ones in the event of our death, but it’s also naïve to think that we’re immune to danger. This is one of the reasons that life insurance exists. In the event of death, life insurance provides a financial cushion for our family and loved ones.

But which person in a household should have life insurance? If you’re the main source of income for your family, then it should be no question whether you have coverage. But what if you’re not the breadwinner? If you’re not the wage earner, you might wonder, “Do I need life insurance?”

Though a family with only one working parent may think they only have one income to protect, the truth is that should the stay-at-home parent suddenly pass, there are a number of costs that the family would incur, just to handle the tasks that the stay-at-home parent was accomplishing on a daily basis. According to a study published by, the average stay-at-home parent works more than 90 hours a week, which would be a salary equivalent to over $100,000. Therefore, it’s important not to count out the non-breadwinners “income.”

Think of it in terms of a traditional two-parent household: If one person is out earning income, it’s a good chance that other person is caring for children and maintaining the home—duties which are constantly overlooked in terms of their importance and value.

Any stay-at-home mom or dad wondering, “Do I need life insurance?” should assess their current situation and imagine how their absence would affect their family. If you were to die, not only would that put an emotional strain on your partner, but it would put him or her in a financial bind. Daycare isn’t cheap, neither are long-term babysitters. The loss of the non-breadwinner in the family would cause increased child-care expenses for the breadwinner, which—even for the most highly-compensated breadwinner—can be a strain. This is an argument for non-breadwinners to purchase life insurance.

Another reason why it is beneficial for non-breadwinners to also be insured, is to offer a “cushion” of sorts for the surviving spouse. It is likely that the emotional stress of the death of a loved one could lead them to have to cut back on working hours, or take additional time off. Having a payout from a life insurance policy can help ease this burden.

So, how much life insurance do you need?

Generally, a breadwinner would take out a policy that covers about 10 – 20 times their annual salary, depending on their age. This should also apply to non-breadwinners. If you estimate that it would cost $25,000 a year to provide childcare and house cleaning, it would be worth taking out a $250,000 policy. Although that sounds like a large investment, it works out to less than $15 per month, which is a reasonable investment for anyone looking for peace of mind.

Get Started with a Quote Today

Term life insurance is more affordable than most people think. If you’re considering purchasing life insurance, use our free, easy private online quote tool to get instant quotes from some of the top-rated insurance companies. If you have any additional questions, the team at Intramark Insurance is always here to help. Give us a call at 866-691-0100.


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How Your Lifestyle Can Affect Your Life Insurance Classification

When you purchase a life insurance policy, your provider will assign you a certain rate classification. These classifications are essentially estimations of your risk level based on several different health factors. Your classification will determine, among other things, whether or not you’ll have to pay more for your insurance due to factors like being overweight, smoking or chewing tobacco, unhealthy drinking habits, a dangerous job, risky hobbies, or a serious medical condition.

Your classification can make a huge impact on the amount of premium you have to pay each month, leaving many wondering if there is anything they can do to change their classification after signing up for a policy. Fortunately the answer, in many cases, is yes. If you think that you are considerably healthier now than when you took out your policy, it is indeed possible to ask your health insurance provider for a reevaluation under certain circumstances. Let’s have a look at some of the factors that may or may not affect your life insurance classification.

Health Conditions

First, the bad news. There are certain medical conditions that you simply can’t do anything about. For instance, if you’ve been diagnosed with diabetes, or a chronic heart condition, you most likely won’t be eligible for an improved classification as these conditions are unlikely to go away or improve significantly enough to warrant a reevaluation.


It doesn’t matter if you’re an occasional cigar smoker, or a pack-a-day cigarette smoker, insurance companies don’t really see a difference between the two, and tobacco use can seriously affect your rates. Smokers often pay up to 200% more per month than non-smokers, so quitting smoking is one of the most effective things you can do to significantly improve your premiums—not to mention your health.

If it’s been a year or two since you quit smoking, you can ask for a reevaluation. Your insurance company will most likely want to do a health exam to check for nicotine, and they might request information about lung function/overall health from your last physical examination. But if everything checks out and you qualify as a non-smoker, you could potentially move up to a better classification (and a better monthly rate).

Bad Habits

Smoking isn’t the only bad habit that can earn you a poor rate classification. Drug use and excessive drinking will also have an effect on your life insurance risk assessment, and it might even get you denied coverage altogether. But if you decide to cut back, or quit outright, you might be eligible for a reevaluation after some time has passed.

Weight Loss

Build is a very common factor in determining insurance classifications and most insurance companies use a height/weight chart to determine if/how your particular build will impact your overall risk. Because being overweight comes with some potentially serious health consequences, it can also cause a significant increase in your insurance premiums. But, if you make some changes to your lifestyle that cause you to lose weight and keep it off for at least one year, you could be looking at a slimmer you, and a slimmer monthly premium.

Risky Business

High risk jobs and dangerous hobbies can also seriously impact your life insurance rate classification. If you’re an electrician, a coal miner, or someone who gets a thrill from jumping out of airplanes or swimming with great white sharks, you can probably count on a lower classification and a higher monthly premium. However, if you switch professions, or decide to trade in your parachute for a more grounded hobby (have you considered collecting stamps?) your insurance provider might be willing to revisit your risk class.

As you can see, there are a lot of things you can do to improve your rate classification even after your insurance policy is in place, so you shouldn’t let your initial classification deter you from purchasing a plan that could potentially be a crucial safety net for your family. In most cases, changing your classification just requires a bit of diligence and patience. Your insurance provider will be more than happy to work with you if you’ve managed to improve your health, but they need to be sure that your lifestyle changes are more than just a passing phase. So if you’re trying to make a change regarding any of the scenarios listed above, stick with it for a year or two and before you know it, both you and your wallet will be in much better shape.


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