How should couples handle life insurance when there is a large income gap?

When one partner earns significantly more than the other, life insurance planning requires careful thought about what each partner's death would mean financially — not just for the surviving spouse, but for children and shared financial goals.

The higher-earning partner's coverage need is typically the most obvious: income replacement to maintain the household's standard of living. This often means 10–15 times the higher earner's annual income in coverage.

The lower-earning partner's coverage need is frequently underestimated. Even a modest income contributes to household cash flow — covering utilities, groceries, childcare contributions, or personal expenses that the higher earner cannot easily absorb alone. Additionally, the lower-earning partner may provide non-income value (childcare, household management) worth significant sums.

For stay-at-home partners, the replacement cost of household services is documented and real — childcare alone can exceed $20,000–$30,000 annually in Nevada's major metros (illustrative).

The practical recommendation: meaningful coverage on both partners, with the higher earner's coverage sized to income replacement and the lower earner's coverage sized to services replacement. Agents in our network can help couples calculate and coordinate appropriate coverage from A-rated (A.M. Best) carriers.