Dads, why is it so important to have life insurance in place?

Over 21% of UK parents don’t have life insurance and with that in mind, what would happen to your family if you were unfortunately to become critically ill or pass away?

When you become a parent, you have a new responsibility, and you will probably want to protect your family’s financial future. Would your partner still be able to pay your mortgage repayments, monthly bills, food shops on their own for example?

So, why is life insurance important for dads?

The main reason why dads look into life insurance is to make sure their loved ones don’t have any financial worries in the event that they pass away or become critically ill.

During what will be a difficult time for your family, providing them with a lump sum can mean they have one less thing to worry about as the mortgage can be paid off or daily bills will be covered.

What can a life insurance payout be used for?

A life insurance payout can be used for:

  • Mortgage repayments or rent
  • Household bills
  • Childcare costs
  • Paying off any debts or credit cards 

Are there additional benefits of life insurance?

Some insurers will offer additional benefits with their life insurance policies. One insurer provides 24/7 GP service, second medical opinion and mental health support for you and your children.

With telephone and video call consultants, you can have peace of mind knowing that you can see a GP for you and your children when you need it – taking the stress away of trying to call through.

Self-employed Dads – what happens if you can’t work?

Around two thirds of self-employed people are men and whilst being self employed comes with a large set of benefits, one negative is that you wouldn’t receive sick pay from an employer if you were too ill or sick to work.

Therefore, this is where Income Protection can step in. In the event that you’re unable to work due to illness or injury, income protection can pay you a regular replacement income.

Income protection is limited to those who are self-employed, people who are employed decided to have income protection as statutory sick pay wouldn’t cover all their monthly bills if they were signed off work.

Critical illness – what can a payout be used for?

Critical illness is a type of protection insurance policy that can run along your life insurance if you’re eligible for the cover. In the event that you were diagnosed with a critical illness, you can use the payout for the following:

  • Day to Day Spending
  • Tick off items from your bucket list
  • Make home adaptions such as stair lifts, support rails, wheelchair friendly bathrooms
  • Rehabilitation services such as physiotherapy and osteopathy
  • A safety net for the future
  • Payment towards your mortgage

The payout is there to support you and your family whilst you’re unable to work, going through treatment and making changes where needed.

Every insurer has its own list of critical illness cover and what they will cover. For example, one insurer will cover over 100 conditions.

Already have a policy, how confident are you that it’s still suitable?

It’s good to review your life insurance to double check that it’s still meeting your requirements. You may have added a little one to your family, moved house, brought your first house, got married or divorced.

These life events may have changed the type of cover that you require as you pay be looking to cover a larger mortgage or leave a bigger lump sum for your family.

Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.