Life insurance for dads

It’s the proudest moment of your life - and, without doubt, one of the most expensive! Becoming a father is a joyous occasion, but one which brings new responsibilities to consider, not least the finances. According to the Child Poverty Action Group, the cost of raising a child until 18 in the UK, including housing, childcare and council tax, is more than £166,000 for a couple, rising to a staggering £220,000 for a single parent. When you start to add up everything you need, from baby equipment to school uniform and university fees, it’s no wonder that life insurance for dads seems like a sensible idea.

What is life insurance for Dads?

Life insurance is designed to provide financial protection for your family in the event of your death. It typically pays out a lump sum or regular payments to your beneficiaries, who are usually your dependents, such as your spouse/partner and children.

This financial support can help cover expenses such as:

• Mortgage payments
• Household bills
• Childcare costs
• Education expenses
• and any other financial obligations your family may have.

How much life insurance do I need?

Life insurance is a wise investment to ensure that, should you pass away, your family will be able to cope financially. The right policy can enable them to stay in the family home, pay the bills and live the lifestyle you plan for them, including taking part in any activities and clubs and going to university.

The amount of life insurance needed depends on your salary, your financial commitments and any savings or other family income, such as your partner’s salary. Bear in mind that, should the worst happen to you, your partner might decide to give up work to invest more time in family life.

You may have death in service cover as part of your employee benefits package, which tends to be between 2 and 4 times your salary. You might want to ‘top up’ this cover with additional life insurance, depending on how your family would manage without your income.

Types of life insurance for dads

Level-term life insurance

When taking out a level-term life insurance policy, you set the amount that your loved ones will receive upon your death and that amount stays the same for the length of the policy, as does, typically, your premiums.

Decreasing-term life insurance

Decreasing term life insurance pays out a lump sum paid to your family, but the lump sum decreases throughout the length of the policy, which works well for those wanting to make sure their mortgage is paid off. This type of cover is generally cheaper.

Life assurance

Otherwise known as whole-of-life insurance, this policy will pay out a lump sum upon your death and doesn’t have a set term for the policy.

Joint life insurance

Joint life insurance is designed to cover you and your partner in case one of you dies. A joint policy will typically cover two lives on a “first death” basis, where the insurer will pay out a lump sum on the event of the first death in the couple, but won’t pay out a second time.

Find the right cover

Life cover for older dads

Don’t worry, however, if you’re no longer in the younger age bracket. ActiveQuote also specialises in whole of life cover, which is ideal if you’re looking for life insurance if you’re a dad in your 50s. As the name suggests, whole of life insurance covers you for the duration of your life, as opposed to term life insurance, which is for a defined period. Many people choose to take out whole of life cover in their 50s as this time of life often coincides with other events, such as elderly parents needing extra support or children leaving home. Whole-of-life insurance is sometimes referred to as life assurance, because a pay out is guaranteed, and can be taken out up to the age of 80.

Life cover for younger dads

Did you know the best time to take out life insurance is before the age of 30? Life insurance premiums are cheaper the younger you are, when your health is likely to be at a peak.Comparing life cover quotes and finding the best policy in your 20s can fix your premiums at a price you can afford as your family grows - and as you start to experience all those aches and pains you don’t notice when you’re younger!

Life cover for at-home dads

Although it remains the case that fewer men than women are full time parents, around one percent of men stay at home to care for their family, while men also carry out around 16 hours of unpaid chores in the home per week. If you’re an at-home dad, you might think you don’t need to take out life insurance when, in fact, replacing the care and support you provide could cost your family a lot of money if you were no longer there. Life insurance for at-home fathers is a sure way of safeguarding your family’s finances should you pass away, leaving your loved ones with the means to pay the mortgage or rent and take care of the bills while they adjust after your death. The right policy can also enable your partner to take an extended period of leave from work to focus on the children.

Life insurance for couples

Regardless of whether you're a single father or part of a couple, you have the option to choose between single life insurance or joint life cover. Opting for joint life insurance can sometimes be more cost-effective than obtaining two separate policies and can streamline the administrative process. However, it's essential to note that joint life insurance typically only provides coverage for the first death, which means the surviving parent may require additional coverage. Additionally, untangling a joint policy can be complex in the event of separation or divorce.

Life insurance for self-employed dads

If you’re a self-employed father, the financial pressures of providing for your family or contributing to the household expenses can be even greater - and you don’t have the safety net of staff benefits. Life insurance for self-employed workers can be a lifeline, allowing your family to keep afloat as well as pay off any outstanding expenses, loans or invoices your business has incurred. The tax-free lump sum could also give your partner or grown-up children the means to take over the business, should they wish to do so, and keep your legacy going in more ways than one.

Life insurance for single dads

If you’re raising your children as part of a couple, taking out a joint life insurance policy with your partner can often be the right option. If you’re a solo parent, however, single life insurance will ensure that your children are well provided for in the event of your death.As a single dad, it’s doubly important to make a will and talk to your wider family about the future, to make sure your children are brought up in line with your wishes.

What other insurance is useful as a dad?

Choosing a good life insurance policy is often an ideal time to review other insurance products and weigh up what you need. Critical illness cover, which pays out a tax-free lump sum if you’re diagnosed with a serious condition, often goes hand in hand with life insurance, while income protection gives you a monthly sum of up to 70% of your gross salary should you be unable to work due to an accident, illness or in some cases involuntary redundancy. Health insurance, also known as private medical insurance, can also get you back to work sooner should you become ill, as it allows you to bypass NHS waiting times and, often, receive treatment closer to home.

Why compare life insurance for dads with ActiveQuote?

Buying life insurance can feel daunting, but we understand the significance of finding the perfect coverage tailored to your needs. We're dedicated to guiding you through the process, ensuring you feel supported at every stage. While our policies are easy to understand and available for online purchase, our emphasis on outstanding customer service means our expert team is readily available to assist you with any questions over the phone. With our top-ranking customer review status, you can trust in our expertise and our unwavering commitment to your peace of mind.

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