Women, whether they work in or outside the home, tend to underestimate their economic contribution to the family. So they don't make adequate provisions to offset the loss of their income, which could leave their families vulnerable to financial disaster should they die. In my case, since my husband earns about twice what I do, I figured all would be fine if he were properly insured. But the reality is, we depend on both our salaries to pay our mortgage and care for our two small children. So you have to determine how much insurance you need and the most cost-effective way to purchase it.
Many big companies provide some life insurance benefit, but the amount is usually insufficient.
But many financial planners recommend that each wage earner in a dual-income couple be covered for five to seven times gross annual income. Other advisers suggest you determine the family's yearly financial needs, multiply the number by 20, and make sure the two spouses' combined coverage is adequate. Both methods assume you'll want life insurance for 20 years, or until your children reach adulthood. You need to determine what it would cost to replace the services you provide, such as child care, housekeeping, cooking, and transportation. Securing supplemental coverage from your own company is convenient, but you have more policy choices if you go outside.