The 1 value of a Dad.
Father's Day, on Sunday June 17, is fast approaching. It's the one day in the year when children of all ages can really spoil their Dads and let them know just how much they care for and appreciate them.
But are you aware of just how much a typical Dad actually does around the house? A report from Legal & General would suggest not.
Because while Mums believe that Dads do 15 hours of chores and childcare a week, the reality is actually a more sizable 50 hours. And if this were translated into paid employment, the financial value would total £21,306 a year. In other words, that is how much it would cost to pay someone else to do Dad's housework and share of child-minding.
The report found that the largest portion of Dads' time is spent looking after the children at 20 hours. Cooking and preparing meals comes in next at 5.5 hours, with tidying up not far behind at 4.5 hours. Chores that make up the rest of the time include gardening, shopping, cleaning, ironing, washing up and driving to activities.
As well as their contribution around the home, the L&G report also showed that working Dads earn, on average, £29,000 a year. So, taking all this into consideration, families clearly need to think about how they would cope financially if either partner were to fall ill.
While it is something none of us wants to think about, losing a salary due to death or illness or not being able to carry out the usual work around the home because of incapacity could land us in substantial financial difficulty - unless we had suitable insurance in place.
Life insurance
While life insurance isn't the most pleasant thing to think about, having it in place can give you peace of mind that if the worse were to happen and you were to die, your family would be financially looked after.
There are many different types and levels of life insurance so it's important to research the various options and find the right one for you.
Critical illness cover
What if you don’t die, but become seriously ill? One way to secure precious peace of mind would be to consider combining life cover with critical illness cover. The last thing you need is added worry and stress over finances if you are sick, so this pays out a tax-free sum of money if you were to become seriously ill.
It would provide funds to pay off your mortgage or keep up the repayments or your rent. It would also help ensure your bills were paid and maybe provide money to adapt your home for wheelchair use or pay for a convalescent holiday. Once you know your finances are covered, you can relax and concentrate on getting better.
All policies differ, and as with most things, you will get what you pay for. A basic policy will cover particular illnesses such as cancer and heart attack but a more comprehensive policy will cover around 40 illnesses and may cover diseases such as Multiple Sclerosis and Alzheimer's disease.
Before making a decision, make sure you have consulted an independent financial adviser (IFA) to find out exactly what you would be covered for.
Income protection
While critical illness cover pays out a lump sum on diagnosis of an illness, income protection pays out a regular amount to make up for the loss of an income when the insured person cannot work because of illness or injury.
There are two types of income protection - short and long term. The former, known as accident, sickness and unemployment cover, does what it says on the tin, protecting you if you were to be ill, lose your job or be involved in an accident.
It pays out for a short, specified period of time and can either be used to cover a specific debt, your mortgage, or just to ensure that you can continue living your current lifestyle without financial concerns.
Long term income protection plans cover you until you are able to go back to work or until the policy term ends, which is normally your retirement age. It does not, therefore, cover you if you lose your job.
Again, there are a variety of types available so to make sure you get the best product for you, speak to an IFA.
So, although critical illness and death aren't the nicest topics of conversation, making sure you have insurance in place will give you peace of mind and allow you to enjoy life without 'what if' worries.
To find out more about all the above insurances and the types of policies available, please contact Matthews IFA Ltd and get advice on the most suitable ones for yourself and your family.