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BLOG 06/10/2019

Life insurance for dads: 5 things you need to know

To your family, you’re Mr. Fix-it. When something breaks, you’re the one they run to. And though you grumble about it at times, you really do love being the go-to guy. From toy repair to car repair and everything in between, you can pretty much fix anything. But what if something happened to you? Would your family be protected financially? One way to fix that is with life insurance.

A recent study shows that most Americans have life insurance. If you don’t have coverage yet, there’s no time like the present to join the club. Still, one in four men aren’t sure what life insurance does, so let’s start there. Typically, life insurance provides your chosen loved ones with a lump-sum payout if you were to pass away. This is money that can help them cover the bills or childcare, pay for college or the mortgage on your home, or even create a nest egg for your partner and kids down the road. If it’s not on your radar, here are five reasons why it should be.

Because your coverage through work is not enough

Many dads think that if they have group life insurance through their employer, then it’s taken care of. While that might have been true when people tended to stay at the same job for decades, it’s definitely not true in today’s workplace. The median number of years workers have been with their current employer is 4.6, according to the Bureau of Labor Statistics, and that figure is even lower for workers under 35. Unfortunately, life insurance doesn’t move with you when you change jobs. If the company owns the life insurance policy you’re enrolled in, you’re going to lose it if you leave, no matter how long you’ve been with them.

On top of that, the amount of coverage offered through a group plan is typically smaller than the amount many experts recommend, which is seven to 10 times your income. Having your own individual life insurance policy means one less thing to worry about and the satisfaction of knowing you’re fully covered, even if you change jobs.

Because kids are expensive

Thinking about splurging on that new Xbox system for your son’s birthday or that new pair of Nikes he’s been begging for? According to the U.S. Department of Agriculture, the average cost of raising a child from birth to age 17 is $233,610. Add to that the cost of college – anywhere from $20,090 to $45,370 annually – and the figure is jaw-dropping. Most of us can’t imagine how to come up with that much money, but you actually can cover the cost… with life insurance. For a small monthly premium, you can have the peace of mind of knowing that if the worst unfortunately happens to you, your children can still be okay financially.

Because coverage is cheaper than you think

One of the most common reasons people don’t get life insurance is because they think they can’t afford it. Turns out, most people greatly overestimate the cost. An insurance industry study  found that half of consumers think life insurance is nearly three times more expensive than it actually is, and millennials overestimate the cost by nearly seven times. The truth is, a $250,000, 10-year term life insurance policy for a healthy 30-year-old man could be around $14 a month – probably less than a round of mini golf with the family.

The other thing to know is that the younger you are when you get life insurance, the less expensive it is. That’s because the cost for life insurance coverage can increase by up to 10% every year as you age. By getting covered now, you can lock in lower rates and avoid the price hikes later on.

Because your partner expects you to handle it

If you’re the main breadwinner for your household, your partner probably expects you to be the one to get life insurance. According to an insurance industry study, nine out of 10 people believe it’s the breadwinner’s responsibility to get covered, and two in five millennials wish their partner would buy more life insurance. Even if your spouse is also bringing home a paycheck, real financial security requires both partners to have life insurance. Whether you’re a working spouse or a stay-at-home parent, life insurance provides a financial cushion to cover everything you contribute to the household. That includes the unpaid stuff, like caring for the kids, that your partner would have to hire someone to do if it wasn’t for you.

Because you’d do anything to protect them

You may not have always been sure you were father material, but from the moment you held your little one in your arms, you were hooked. These days, dads are just as likely as moms to say that parenting is extremely important to their identity. So it’s only natural to want to give your kids everything and, at the same time, do everything you can to protect them.

Life insurance can help. It’s a way for you to protect your family and make sure they’re taken care of after you’re gone. Find out how to protect your family’s future here.

 

At eFinancial, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed and updated regularly to ensure the information is as relevant as possible.