Time to take cover

Cristiano Ronaldo may be worth £80 million in the eyes of Real Madrid, but the average Dad is worth around £23,000 a year to a British family in terms of the work they do around the home.

Image: Charlie pondered the need to protect the family whilst making their favourite meal

Legal & General’s “Value of a Dad” survey has highlighted the significant, and often overlooked, cost of replacing the domestic chores carried out by doting Dads. According to the research men spend 53 hours a week on household work and childcare. Almost half of this time (21.5 hours) is spent on looking after the kids, 9.5 hours on housekeeping, 7.5 hours on cleaning and 6 hours on cooking.

Yet, despite the huge contribution that Dads are making to the running of the household they are in serious danger of undoing all their hard work by neglecting one key responsibility: protecting their loved ones in the event of their death or serious illness.

Just 63% of Dads have life insurance in place, 33% have critical illness cover and 27% have income protection. Family income benefit, which pays out a regular tax-free payment in the event of death, is the least popular form of protection of all, with just 23% of Dads holding this type of policy.

This low protection uptake is particularly disappointing given the fact that many products are now offering better value for money than ever before. For instance, whilst motor insurance premiums have doubled over the last 12 years, life insurance premiums have dropped by a massive 40%.

The average premium for a 35 year old male non-smoker taking out £100,000 of level term assurance is just £10.28 per month, equivalent to around 35 pence a day. For many people the cost of purchasing life insurance should no longer be a valid excuse. At the very least you should have enough life insurance to cover any outstanding debts such as your mortgage or personal loans.

Many insurers will also allow you to add critical illness cover to your life insurance which will pay out a lump sum on the diagnosis of certain specified illnesses. The number of illnesses covered has continued to increase and in some cases insurers will automatically include cover for your children at no additional cost.

Father’s Day provides us with an opportunity to show our appreciation for all the hard work that Dads do. But it should also serve as a powerful reminder of the need for Dads to protect their family against financial hardship. The value of a Dad around the house may be £23,000 but the peace of mind of knowing that adequate protection is in place is priceless. Take a look at our life insurance best buys to check the latest rates on offer.

Richard Eagling is Editor of Investment Life & Pensions Moneyfacts