Life Insurance for Dads

Being a father is a wonderful life achievement, but it also entails many new financial obligations. There are numerous expenses to consider throughout this period, which spans from the time of your child’s birth until the time they leave for university.

In fact, the Child Poverty Action Group estimates that raising a child in the UK from birth to age 18 would cost an eye-popping £152,747[1]. For this reason, many parents get life insurance in Northern Ireland & UK to safeguard their family’s financial future.

If you have life insurance in Northern Ireland & UK, you can rest easy as a dad knowing that your family would be able to live without your income in the event of your passing.

The least expensive sort of life insurance is decreasing term life insurance for dads in Northern Ireland & UK. Additionally, it’s made to pay out if you pass away within a predetermined time frame (the term).

Contrary to level term life insurance, this policy’s payout amount will decrease over the course of the term. This makes it perfect for paying off debts like a mortgage that will be paid off over time.

In contrast to standard life insurance, family income benefit insurance for dads in Northern Ireland & UK does not provide a cash payout in the case of your demise. Instead, over a certain length of time, it gives your family tax-free monthly payments.

It is intended to aid with long-term family budgeting and to replace a lost income.

Payments from family income benefit insurance can be used to pay the rent or mortgage, as well as for day-to-day expenses like food and childcare.

You must determine how much life insurance coverage you need after deciding which policy type best suits your needs.

If your only goal is to pay off your mortgage, all you need to do is obtain an amount assured that corresponds to the balance of your mortgage debt.

However, if looking to cover future family living costs too, then you would need to factor in your regular outgoings as well such as:

• Repayment of loans (car finance, personal loans).
• Daily costs of living (food, clothing, leisure activities).
• Household expenses (gas, electricity, water, council tax, tv license, broadband).
• School or university tuition.

You might also want to account for any additional expenses that might develop following your demise, such as:

• Funeral expenses.
• Legal costs.
• Decrease in household income because of fewer hours worked.
• Added childcare expenses.

Consider whether you would like to leave behind a lump sum gift to your loved ones. Life insurance for dads in Northern Ireland & UK can be utilised to generate an inheritance for them.

If your partner doesn’t have their own life insurance already, then you may consider taking out a joint life insurance policy in both your names.

Key elements of joint life insurance in Northern Ireland & UK:

• Concurrently covers two lives.
• One monthly fee payment is necessary.
• Pays money if one or both policyholders pass away during the policy’s term.
• After an approved claim, coverage ends.
• Approximately 25% less expensive than two separate policies.

While having joint life insurance in Northern Ireland & UK may result in financial savings, you might feel that your children are better protected if both parents have their own individual life insurance policies.

This is so that the surviving parent will have coverage and your children will have financial security because once a joint life insurance policy pays out, it terminates.

If your relationship changes in the future, it could also be challenging to divide a joint life insurance policy in Northern Ireland & UK.

Young, healthy dads are in the best position to get the most affordable life insurance rates. This is because the younger and healthier you are, the longer you’re expected to live – and the less of a risk you pose to the insurer.

Your health may decline, and your life expectancy may shorten as you age, raising your premiums and raising your risk of filing a claim. Since nobody can predict the future, it makes sense to get inexpensive life insurance in Northern Ireland & UK while you can.

Why not take advantage of the opportunity now while dads in their 20s or 30s may lock in extremely low life insurance rates (from as little as £5 per month)?

Dads who work in the UK & Northern Ireland frequently receive life insurance through their company. The term “death in service benefit” is frequently used. In the event of your death, it pays out around three times your annual salary to your loved ones.

Although this is a wonderful benefit, it is unlikely to provide the necessary long-term coverage to eliminate the need for personal life insurance in Northern Ireland & UK if you have a sizable mortgage and/or young children.

Additionally, these employment benefits are not portable. Therefore, your family would no longer be protected if you were to change employment or retire.

What you can do in the meanwhile is “top up” your death in service benefit with the necessary amount of personal life insurance in Northern Ireland & UK to make sure your family is adequately covered in the event of an untimely death.

It’s a frequent fallacy that because stay-at-home parents don’t receive a salary, they don’t need life insurance in Northern Ireland & UK.

This couldn’t be further from the truth in reality.

If you’re a stay-at-home father, stop for a moment to think about all the voluntary tasks you perform:

• Taxi service for childcare
• Chef\Cleaner
• Gardener
• Food shopper
• Mechanic
• Homework tutor

Now, as difficult as it might be, consider how these responsibilities might be filled if you suddenly disappeared.

Childcare is a good illustration. Full-time childcare typically costs £263.81 per week per child[3].

Could your partner afford these significant ongoing fees?

If not, would your partner have to quit their job or work fewer hours? But then, from where would the funding come? The solution may be found in life insurance, which would pay out a lump sum in the worst-case scenario.

If you can show that you have an “insurable interest” in your father’s life, you may be eligible to obtain life insurance in Northern Ireland & UK on his behalf from some insurers.

If he went away, you would suffer a financial loss, which is known as insurable interest. For instance, you two co-own a business, or he’s paying back a debt you gave him.

You would need your father’s consent and must be qualified to get life insurance yourself to purchase coverage for him in Northern Ireland & UK.