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A newly married couple or a couple with young children needs a term life insurance plan. This term policy is normally taken in the name of the husband (the breadwinner of the family). This is a custom followed for many years and very few people if any take a life insurance policy in the name of their spouse/wife.
A working wife contributes to the up keep of the family leading to a better quality of life. The double income contributes to a better education for your children and better facilities/quality of living at home. In case of the death of your spouse/wife this income is lost. You will have to manage all the extra expenses without the monetary/financial contributions of your wife. Your children’s education might suffer and marriage/college education can cost a lot of money. This added burden of expenses can be resolved by taking a term life insurance policy in the name of your wife.
The need :
In case of the untimely demise of your spouse/wife you would have to bear her elderly parents expense as well as her personal loan/any other loan liabilities taken in her name.
A term life insurance plan taken in the name of your spouse/by your spouse helps to support you in these difficult times.
If you and your spouse have taken a home loan jointly (Both your names) then it is a good idea to take a term life insurance in the name of your spouse. If your spouse/wife dies the tax free lump sum you get can be used to pay off the EMI on the home loan or you can pay off the whole amount (Clear all pending dues) on the home loan. If your spouse/wife and you both die in an accident then your children can claim a lump sum from two life insurance policies (Yours and your wife’s).Any outstanding loan (home/personal/credit card) can be paid off and your children can use the excess money for their livelihood/education.
If you and your wife have no children the tendency is to skip the life insurance or at least not take a life insurance policy in the name of your spouse/wife as financial obligations are less.
Both you and your spouse might be taking care of elderly parents and a term life insurance policy proves useful in this case. With elderly people living longer due to better medical facilities a term life policy in the name of your spouse is a must. If something untoward were to happen to your spouse/wife this money can be used to take care of her parents.
A non working wife popularly called a home maker does the house work (cooking and cleaning) and taking care of the children. If she were to die then along with the emotional loss you would incur these expenses as you would have to hire a full time maid to do these jobs.