Searching for the right gift for your husband this Father’s Day? Forget the expensive silk tie, do-it-all DIY tool or the latest high-tech electronics and get the father in your life something he really needs: additional life insurance.
Perhaps your husband, like most men, carries some life insurance. A study showed that about 74% of husbands have life insurance coverage (LIMRA Person-Level Trends in U.S. Life Insurance Ownership, 2011) with most men under 55 more likely to be covered by group life insurance through employers than by individual life policies.
But having life insurance and having enough life insurance are two different matters. The same study showed that, overall, men’s average insurance coverage decreased by about $45,000 in the past six years, with men between 25 and 64 carrying less life insurance compared with their older and younger counterparts. This means that their dependents—spouses, children and any other family members for whom they provide support—could find themselves at financial risk should the unexpected happen.
If it’s been some time since you and your husband had the “life insurance talk,” then let Father’s Day serve as the incentive to sit down and do the numbers. Use the following scenarios as a starting point to evaluate the type and amount of coverage your husband currently carries and consider if it’s enough. (More questions can be found here.)
If your husband is the sole breadwinner, is there enough insurance to cover the mortgage, provide for living expenses and pay for your children’s education?
If you have added a few “bundles of joy” since the last time he purchased a life policy, is the face amount enough to meet your expanded family’s needs?
If either, or both, of you are responsible for other family members—aging parents or a special needs sibling, for example—will the money be there to continue to provide that financial support once your husband is gone?
These are serious questions but critical to discuss, since life events are unpredictable, as Brigette Hunter found out. At 27, Brigette was widowed when her husband, Matt, was killed in a car accident. Because he had no life insurance, Brigette had to borrow money to pay his funeral expenses. When Brigette remarried, she and her second husband, Anthony, both bought life insurance policies, since they had three children and their own business to support. Unfortunately, Anthony died at 34 from melanoma. And while nothing could replace the love of a husband, the proceeds from his policy allowed Brigette to keep the business running and cover the family needs. You can watch her story here.
Not sure how much or what type to buy? LIFE’s Life Insurance Needs Calculator will help the both of you estimate the amount of money your family will need if your husband’s financial contribution is no longer available. Then use the interactive Life Insurance Product Selector to help you evaluate which is the right insurance type for you: term, permanent or a combination of both. Finally, schedule an appointment with a qualified insurance professional who can further educate you about available options and provisions.
It may not be as exciting as a new power tool or as delicious as a steak dinner with all the fixings, but a new or increased life insurance policy will continue to provide peace of mind for both of you for all the Father’s Days to come. And that’s a gift that your husband truly deserves.