Unemployed people, students, and homemaker should be considered as “non-earners.” In this group there may be an insurable interest for family protection or to cover additional expenses. Those expenses can arise due to disablement or death of the homemaker. In this situation someone must be hired to take care of the household and children, or the spouse must start working part-time and consequently earns less.

Another reason for applying for insurance cover can be as a condition for a loan. In this case we recommend only offering joint cover with the earning spouse / partner.

The following aspects should be considered:

• Does the purpose of cover make sense?
• How is the premium paid?
• What is the family situation?
• Does the overall picture make sense?

Insurance companies should set up their own guidelines and limits for non-earners depending on the local market and company philosophy. You may always reach out to your local Gen Re contacts for assistance.