Got kids? Then you’ve probably got a to-do list that never ends.
Repair fence. Make a dentist appointment. Renew car insurance. Oh, and at the bottom of the list, you see that little reminder that says “do the will”… yeah, that one. How’s it been there for years?
Here’s the problem:
Life insurance, Wills and guardianship are the three discussions that will protect your family more than any other. They are also the three conversations dads tend to avoid the longest.
Let’s look at some statistics. As of today, there are 92 million American adults who admit they either need life insurance or more insurance than they have. Yet only 24% of Americans have a will.
That’s a huge gap. The good news? Closing it is easier than you think.
Time to dive in!
Inside this guide:
- Why Dads Avoid These Conversations
- Life Insurance: How Much Is Enough?
- Wills: The Document Nobody Wants To Write
- Guardianship: The Toughest Question Of All
- How Wealth Management Ties It All Together
Why Dads Avoid These Conversations
Death is not a pleasant subject to think about. It’s morbid. It’s weird. And, let’s face it, there’s always something more important to do.
But that’s not the only reason.
Many dads procrastinate on these conversations because they’re not sure how to begin. Should they call an insurance agent? An attorney? A financial planner? It’s overwhelming, so they file it away for “next month.”
And next month turns into next year.
Research conducted by caring.com discovered that 43% of respondents who don’t have a will say that they haven’t because they just haven’t gotten around to it. Not because they didn’t want to. Life happens.
That’s where wealth management kicks in. Wealth management is more than evaluating your investments. It reviews your complete financial picture — your earnings, your debt obligations, your children and what happens to everything if you pass away. Families in Pennsylvania can work with a local team providing Lancaster PA financial solutions who craft just one plan that links your insurance needs to your estate documents and long-term financial aspirations.
One plan. One conversation. Way less stress.
Life Insurance: How Much Is Enough?
Life insurance protects your family’s paycheck. If you die, they collect an income substitute.
Simple, right?
But here’s what most dads don’t realise…
Having some coverage does NOT equal having adequate coverage. Many men only have the basic policy provided by their employer. The employer policy typically replaces 1x or 2x your annual salary. In most cases that just isn’t enough to:
- Pay off the mortgage
- Cover childcare and school costs
- Replace years of lost income
Men are not nearly as insured as you would think. According to a recent LIMRA study only 55% of men own life insurance. Close to half of men have absolutely nothing.
A general rule of thumb is try to save about 10x your annual salary. However, each family is unique. Debts, savings, and age of children will all factor into that number.
Term life insurance is generally the most affordable way for young families to purchase a large amount of coverage. Term life covers you for a specific period of time (generally 20 or 30 years) which coincides with the years when your children rely on you.
Wills: The Document Nobody Wants To Write
A will is your instructions to the world about who gets what when you die. If you have no will, the state instructs for you.
Read that again.
Without a will, the state decides.
It means that a judge could make decisions about how your home, savings and assets are divided. And the outcome may be very different from what you would have wanted.
A basic will covers:
- Who gets your money and property
- Who handles your estate (your executor)
- Who will raise your children
That last one is the biggie… and it gets its own section below.
Writing your will isn’t as difficult or expensive as most fathers believe. Most families can complete a simple will in just one afternoon. You just have to make the appointment and follow through.
Don’t forget to revise it. Had a baby? Moved into a new house? Getting divorced? Every major event in your life should prompt you to give your will a quick once-over.
Guardianship: The Toughest Question Of All
Who would raise your kids if you and your partner were both gone?
It’s difficult. Possibly the toughest question on this list. And it’s why so many parents will never complete their will.
Here’s the thing:
If you fail to appoint a guardian, the court will appoint one for you. The judge will try… but they aren’t familiar with your family like you are.
When choosing a guardian, think about:
- Values: Do they share your beliefs on how to raise kids?
- Age and health: Will they have the stamina to parent through the years?
- Location: Would your kids need to move schools or leave friends behind?
- Money: Can they afford it? (Your life insurance can help here.)
Ask the individual before you label them. Confirm that they want to be labeled and are ready. After that, choose another individual as an alternative.
And here’s a tip most people miss…
The guardian of your children does not need to be the trustee of their finances. You can appoint one person as guardian and a different person as trustee. This helps ensure the finances are safe and the children are cared for.
Pretty smart, right?
How Wealth Management Ties It All Together
Life insurance, wills and guardianship all work best as a team.
Think about it:
Your life insurance pays the money. Your will directs where that money goes. And your guardian cares for your children during that process.
If one piece is missing, the whole plan falls apart.
That’s why wise dads manage these three assets together as part of their wealth management portfolio. Not as three separate tasks. When it’s all orchestrated together there are no gaps, no double-ups, and no unpleasant surprises for your family.
An effective wealth management plan should be reviewed annually. Your income increases, your children mature and your goals evolve. Your plan should evolve too.
Time To Stop Putting It Off
These conversations are uncomfortable. There’s no way around that.
Yet they’re also two of the most loving things dads can do to their kids. In summary:
- Check your life insurance and make sure it’s enough
- Write (or update) your will
- Choose a guardian and a backup
- Tie it all together with a solid wealth management plan
- Review everything once a year
Pick one this week. Just one. Then knock out the next one.
They’ll never thank you for it, your family…that’s the point.
