Primetime television clichés often point out dads’ aptitude when it comes to teaching their kids how to throw a baseball or set up the stereo, but there are tons of overlooked lessons dads are good for – like personal finances and properly providing for the family.
Though the concept of the father as “the sole provider” is dated, a recent RBC Insurance study finds the desire to protects one’s family is front of mind for many when choosing coverage.
Dads Plan For Big Events
Shockingly, although 70 per cent of Canadian fathers have a life insurance policy, only two in five know exactly how much that policy is worth, let alone how much their families will need.
For many dads, buying life insurance is often hinged on moments of retrospection, says Cathy Preston, vice-president of Life and Health for RBC Insurance, and often because it’s seen “as the responsible thing to do.”
“Their top reasons for purchasing a policy include income for their partner and children, paying off the mortgage, and financing their children’s education,” says Preston. “It’s no surprise that our survey found that it’s the big life events, such as marriage and having children that trigger their investment in life insurance.”
In fact, nearly 40 per cent of men bought or upgraded their policy when they got married and nearly three-quarters of those surveyed did so when they stepped into the world of fatherhood.
For the 30 per cent of dads lacking a policy, nearly half say their investments and other financial resources like household income will ensure the family is protected.
Ensuring You’re Really Covered
Preston points out that since everyone’s lifestyle is different, there’s no set price for life insurance.
“Life insurance is an important part of a complete financial plan and is one of the simplest and most affordable ways to protect the financial future of families,” says Preston. “Some life insurance policies provide protection for your loves ones, along with a tax-sheltered investment option that can grow your money.”
To give you an idea, a 10-year term policy with a death benefit of $250,000 would cost about $28 per month for a healthy 45-year-old Canadian male non-smoker, while a policy with a death benefit of $200,000 would cost $15 per month for a healthy 35-year-old female non-smoker.
Another point to consider before getting a policy is to look at why you need the protection.
“Understand your policy and ask for clarification from your insurance company,” says Preston. “The policy is a legal document, so understand what you’re signing.”
And be honest when answering questions about your medical or family history to minimize the risk of a claim being delayed or denied.