Why do dads need life insurance?
As a dad, you provide financial support and stability for your children. Life insurance ensures they're protected financially if something happens to you.
Whether you're a working dad providing the family income, or a stay-at-home dad managing childcare and household duties, your contribution is essential. If you're the breadwinner, your income pays for housing, food, and education. If you're at home, you provide unpaid childcare worth £10,000-£20,000+ per year.
What life insurance covers for dads:
- Mortgage or rent payments
- Childcare costs if partner returns to work or increases hours
- School uniforms, trips, and education expenses
- University tuition and living costs
- Day-to-day living expenses
- Outstanding debts (loans, credit cards, car finance)
- Funeral costs
- Future financial security for your children
The average cost of raising a child to age 18 in the UK is over £150,000, not including university. Life insurance ensures these costs are covered.
How much life insurance do dads need?
Working Dads
- Income replacement: Calculate 5-10 years of your salary to cover until children are independent
- Mortgage protection: Cover remaining mortgage balance so family can stay in the home
- Childcare costs: Factor in ongoing childcare if partner continues working
- Education costs: Include school expenses and university contributions
Stay-at-Home Dads
- Childcare replacement: £10,000-£20,000/year for full-time childcare or nanny until children are school-age
- After-school care: Before/after school clubs and holiday childcare
- Household help: Cleaning, cooking, and family management support
- Career impact: Partner may need to reduce work hours or miss career opportunities
Example: A working dad with 2 children might need £300,000-£500,000 cover. A stay-at-home dad might need £100,000-£200,000 to cover replacement childcare costs.
Types of life insurance for dads
Life Insurance Options
- Level term life insurance: Fixed payout for the entire term. Best for covering multiple needs. Typical term: Until youngest child reaches 18-21
- Family income benefit: Pays monthly income instead of lump sum. Good for replacing salary. Usually 20-40% cheaper than level term
- Joint life insurance: Covers both parents under one policy. 20-30% cheaper than two separate policies but only pays out once
- Decreasing term: Cheapest option but only suitable if solely covering a repayment mortgage
Most popular: Level term life insurance for 18-25 years, covering until children finish education.
Cost examples for dads:
- 30-year-old dad, £200,000 cover, 25 years: £8-12/month
- 35-year-old dad, £300,000 cover, 20 years: £12-18/month
- 40-year-old dad, £250,000 cover, 18 years: £15-22/month
Life insurance for stay-at-home dads
Many families underestimate the need for life insurance on a stay-at-home dad, but the financial impact of their loss can be significant.
A stay-at-home dad provides unpaid childcare, housework, and family management. If he dies, the surviving working parent would need to pay for:
- Full-time childcare or nanny (£10,000-£20,000+ per year)
- Before and after school clubs
- School holiday childcare
- Cleaning and household help
- Reduced work hours to manage family responsibilities
- Potential career impact (less flexibility, missed promotions)
Recommended cover: £100,000-£200,000 to cover childcare and household costs until children are school-age or independent.
Cost: Life insurance for stay-at-home dads is often cheaper because they're not exposed to workplace risks. A healthy 35-year-old could get £150,000 cover for around £8-12 per month.
Important: The financial value of a stay-at-home parent's contribution is often overlooked. Full-time childcare costs can easily exceed £15,000 per year, making life insurance essential protection for the whole family.
