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Despite Increased Home Involvement, Dads Less Likely to Purchase Life Insurance

Frank N. Darras, America’s top insurance lawyer, commemorates Father’s Day by urging fathers to review their insurance portfolio, especially life insurance, disability, and long-term care. While men are still the primary breadwinners in most American families, fathers are also playing a larger role in the home, adding to the list of reasons why it’s important they protect their families financially.

According to an infographic from Trusted Quote, the time fathers spend alone with their children per week has more than doubled since 1962. In addition, twenty percent of the fathers surveyed were the primary caretakers of children under 5 in 2010.

Dads are also starting to play a larger role around the house. Insure.com’s 2013 Father’s Day Index found that Dad’s annual household salary is up this year from $20,248 to $23,344. The index looks at annual salaries for the traditional kinds of things dads have done for years, from grilling burgers to coaching pee-wee football. It does not account for an income earned outside of the house.

“$23,000 is a lot of extra income earned on top of the wages earned from a full time job. When combining those two numbers, it becomes obvious why dads need to protect themselves and their families from disaster. If dad were no longer able to provide for his family either from injury or death, who would take up the slack? Who would coach the kid’s team, repair things around the home, and change the oil in the car? It’s likely that the spouse would step in or pay someone to take care of these things. Insurance helps fill the financial gaps that would be left behind,” says Darras.

Despite a rise in household responsibilities and men as primary caregivers, dads are not protecting themselves with life insurance. According to LIMRA, the rate of life insurance ownership for men has actually declined drastically over the past two decades. Between 2005 and 2011, husbands between the ages of 35 and 54 had double-digit declines in the percentage who owned an individual life insurance policy.

“This is a startling statistic. Without life insurance, the family can be left unprotected and subject to severe financial struggle if the unexpected happens. While mom may be able to pick up the slack financially, she would need help to pick up the slack at home. I urge father’s to relax this Father’s Day and then take a step in reevaluating their insurance portfolio. Figure out how much it costs to replace the household contribution, whether working outside the home or as a stay-at-home dad, and then make sure there is an insurance policy that matches. You and the family will feel more at ease knowing they are protected,” says Darras.