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What Insurance and Financial Needs do DINKS (dual-income, no kids) Really Have?

If you haven't heard it already, DINKS, meaning dual-income, no kids, is a buzzword a lot of industries are now looking at as the lifestyle is becoming more prevalent. In the U.S., it's estimated that 57% of married households are childless. More so, there is an increase in unmarried dual-income childless homes. It is often assumed that DINKs are flush with cash considering their lack of expenses and risk associated with children. That assumption is partially true, two incomes, ability to split expenses and bills, joint investments, and more disposable income compared to other families. However, there are many things to consider when it comes to insuring the livelihood of their assets, money and lifestyle.

Have an emergency fund: The economy and employment are bouncing back but inflation and worldwide supply chain issues continue, so the threat of unemployment and/or excess spending is still there. If you are used to a lifestyle supported by two incomes, the unfortunate loss of one can cause a dramatic change. So what’s true for any household is true even for the DINK household: you need to have an emergency fund to soften the blow of temporary unemployment.

Make a monthly budget and find out what your joint month expenses are. Keep 6 months of your monthly expenses aside for your emergency fund. Include all expenses like your investments, SIPs and EMIs. Liquid cash is a good choice for an emergency fund so you don't have to struggle with liquidating later down the line. If possible, aim for 12 months if you're both able to contribute significantly.

Medical and life insurance: If your work offers insurance, definitely take advantage of it and enroll. If you're married, you have more options for having your partner on your plan or vice versa as well. If neither of you has the option to enroll through an employer or you are self-employed, call an agent today to find the most comprehensive coverage for a realistic price. Our team knows the ins-and-outs of the health insurance sector and can guide you through all your options, give you peace of mind about your coverage and save you time and money by providing multiple quotes to compare.

While a health insurance is a must, untimely and severe medical illness can completely throw your financial life out of whack, you will need some more thought when buying a life insurance policy. Life insurance is meant to provide a financial cover for dependents in case of untimely death of the breadwinner of the house. Generally when one partner is a homemaker or the household has children, the need for life insurance is very straightforward. As DINKs, things are a little different. Your situation has less dependents to consider but more to evaluate of the financial dependency of your household on you. A term plan that’s at least 10x your annual income is general rule of thumb. Take into account your debts and make sure they are insured like home loans.

We don't have kids so why should we consider life insurance?

Your expenses may increase as a dual-income couple. Couples often use their combined incomes for larger financial obligations like renting nicer apartments, purchasing a home or new cars, boats and animals. Most of the time, individuals couldn't fund these ventures without the help of their partner. One of the primary reasons for buying life insurance is income replacement, so that your family can continue its plans and lifestyle if a breadwinner were to die.

Your spouse may be responsible for your debts. Any debts left when you die would be paid out of your estate, meaning your assets. This repayment will come out of what you leave to your spouse.

Your spouse could also be on the hook for co-signed loans or debts in any joint accounts. In community property states (Texas is one of them), your spouse would be responsible for personal debts you took on after marriage like credit card balances. Life insurance for married couples can help cover those debts if something were to happen.

Before you buy, shop around and get life insurance quotes from Time Insurance Agency. In general, term life insurance is sufficient for most families. Your personal life and financial situation may change over time, so having your own coverage is often the best choice.


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