How Much Life Insurance Each Spouse Needs
Each spouse needs coverage proportional to their economic contribution — income AND non-income contributions. The primary earner needs income replacement coverage. The non-working or secondary-earning spouse needs coverage to replace services they provide (childcare, household management). Model each spouse’s death separately using the DIME method, then purchase appropriate coverage for each.
Joint Life vs. Separate Policies
Joint vs. separate life insurance policy structure for married couples
| Option | Structure | Advantage | Disadvantage |
|---|---|---|---|
| Separate individual policies (most common) | Each spouse has their own policy | Portable, flexible, independently owned | Slightly higher total premium |
| Joint first-to-die policy | Pays at first death | Single premium, convenient | After first death, survivor has no coverage |
| Joint last-to-die (survivorship) | Pays when both die | Estate planning use; lower premium | Doesn’t replace income; only for estate purposes |
Separate individual policies for each spouse are the standard recommendation. They’re portable (surviving spouse keeps coverage if divorced or widowed), independently owned, and allow each policy to be sized appropriately for each spouse’s specific contribution. Joint policies have narrow use cases (estate planning) and shouldn’t be used for standard income replacement needs.
Reviewing Coverage After Major Life Events
Married couples' coverage needs change with every major event: new baby (increase significantly), home purchase (add to coverage), divorce (remove ex-spouse as beneficiary, reassess amounts), death of a spouse (survivor may need new policy if they had no individual coverage), and as children reach independence (decrease coverage as need diminishes). Schedule an annual review and review immediately after any major change.
Calculate Life Insurance for You and Your Spouse
Model both spouses' deaths separately to find the right coverage for each individual.