Adjustment Income

In many households, one spouse is the primary wage earner, while the other stays home with the kids, or works part-time. Adjustment income is usually part of a life insurance policy where funds are paid to the surviving spouse in the event of the death of the primary wage earner. It would cover such things as job training and career counseling to help make the transition to being self-sufficient.

Experts generally recommend taking out a life insurance policy that is at least 10 times your current salary in order to cover everything from funeral expenses to college tuition for the kids.