The new dads guide to life insurance

Becoming a dad is one of life’s golden gifts you can get as a man. You become someone’s provider, protector, procreator, and mentor all in one.

Even so, fulfilling all these responsibilities can be challenging with everyday living expenses now higher than ever before.

Luckily today’s article is about helping dads play their roles effectively. We discuss how life insurance can serve as a support system for dads of all ages. Also, we share the four main types of insurance policies that offer your family the financial protection it may need in the event of your passing away.

Finally, we explain special groups of dads and the insurance options that suit them.

Ready? Let’s get started!

How is life insurance a dad’s support system?

Dads play a vital role in the wellbeing of their families through protecting and providing for them. But then, life can throw curves that prevent them from fulfilling these duties.

For example, they can fall critically ill, lose a job or acquire other obligations that put them in financial difficulty. For this, a support system capable of indemnifying them or their families to the position before loss occurrence is a sure saviour. Not many can fit the bill more than life insurance.

As a support system it does the following:

Provides financial security

Life insurance offers various types of plans to provide financial security when a predetermined risk occurs. For example, a policy like the Family Income Benefit offers monthly or lump sum payments when you suddenly pass away. With it, your family can cope easily thereafter affording their living costs.

Covers financial obligations

Worried about repaying a loan that takes a decade or two to clear? Such long-term financial obligations can stress you but even more your family if you suddenly departed.

A life insurance policy like the mortgage house protection takes care of the balance on a house loan when you pass away while still repaying it.

Assists self-employed dads

If you’re a self-employed dad, most likely you fully depend on your business income to earn a living. Unlike employed dads, you miss out on employee perks such as income protection schemes, death-in-service compensations, or sick-leave pays.

Life insurance offers you a chance to apply for policies designed for the self-employed. Like employed dads, you can guarantee your family financial support no matter what happens.

Types of life insurance available for dads

Whole of Life insurance

This type of life insurance covers you against risks for as long as you’re alive and paying your premiums. It is ideal for dads who can afford to finance a policy until they pass away.

Although it guarantees your family a rich cover, you may eventually pay a higher amount than the payout.

Level term life insurance

The level term life insurance exists for a pre-specified period. It is ideal for dads who want to fulfil their fatherly duties during a particular phase of life.

For example, it may offer a policy that provides a cover over your children’s financial needs in school. With it, you provide permanent financial security on your offspring’s education whether you live to see them completing school or not.

Family income benefit

Are you a dad who’s also the only breadwinner in your family? You reckon that in your absence, your unemployed partner would struggle to play your provision roles.

The family benefits policy offers an alternative income stream when you can no longer provide for a reason that your insurer knows. It may be in the form of a one-time lump sum or regular monthly payments.

Decreasing term life insurance

This type of life insurance helps you to meet financial obligations whose value decreases over time.

For example, it may offer a cover that repays long-term loans, like mortgages, should you pass away before you can complete paying them off.

Two categories of dads who can use life insurance

Life insurance offers a variety of plans that can suit all people in general, specific classes of people, or even unique family setups. Read on to discover the various types of dads and how their status affects their life insurance options:

Single dads

Single dads (widowed, divorced, or unmarried) may work extra hard to play their parenting role. Particularly,  if their partners are totally absent, the future of their children can be at a great risk.

If you’re a single dad, disclose this marital status with your insurance provider. Doing this ensures your beneficiaries have a cover that sufficiently takes care of their needs in the absence of both parents.

Young dads

The phase that follows shortly after becoming a dad can be overwhelming both emotionally and financially. Young dads are often learning one important lesson after another on parenting.

Even with so much at hand, you can still benefit from life insurance. Luckily most providers charge a lower premium when you apply for a policy as a young person.

Which of these policies do you think best suit your current situation? We’d love to hear your feedback in the comments below.


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