Is life insurance only for the earning?

The main principle of insurance is to indemnify the risk. This risk would result in a loss in the event of it occurring. Life insurance in general are taken to make good the pecuniary loss suffered by the family in the event of the demise of the earning member. This in a way mitigates the economic loss and provides some relief in emotionally difficult times.

This brings us to an interesting question, is life insurance cover apt only for an earning individual / bread-winner / wage earner or does the non-working spouse / homemaker too deserve insurance? Economics, historically, has ignored the monetary contributions of a homemaker / housewife to the household.

As discussed above, while life insurance indemnifies any pecuniary loss, it does not do so for any emotional loss that an surviving individual or family suffers. One of the factors to be considered is that any emotional loss can be quantified if it has a financial bearing on the recipient. A homemaker too has a financial impact on the family and its well-being. While the debate continues on accounting a homemaker's contribution to the household, a life insurance cover would definitely not only protect the non-working spouse but also their family.

Some of the reasons why life insurance must be considered on a non-working spouse / homemaker is:

1. To hire professional services / domestic help to take care of home and family while one copes with the emotional loss one would have just suffered and later to focus on one's career.
2. To ensure adequate life and health cover for old age for a homemaker. It would prove beneficial to obtain a life insurance cover early as this would ensure better price and additional benefits during old age.
3. This would also take care of any medical emergencies that may arise during the lifespan of the non-working spouse and render them incapable of any work either temporarily or permanently.
4. If the homemaker decides to start earning or pursue one's interests later on in life, life insurance taken early in life would avoid buying insurance at higher premiums.

The services rendered by a homemaker is not to be ignored and a life insurance cover for the non-working spouse must be part of financial planning of any family.