Single parenthood has its own challenges, and particularly so when it comes to the future – planning. One of the crucial steps you can take is to get a life insurer. However, what is the best way to assess the available policies? Here, we will examine some factors that should be considered when you are going with Single Parent Life Insurance with a view to protecting their children in the long run.
Why Single Parents Need Life Insurance
For single parents life Insurance, it is common that the parent is the sole provider for the family. Meaning that in the event of death, it would be the children who will need to be financially catered for. Single Parent Life Insurance is comforting in the fact that their children will not have to struggle financially. It helps cover things like:
- Funeral costs
- Everyday expenses like rent and food
- Your children’s future education
- Any outstanding debts, like a mortgage or car loan
With the right life insurance policy, you know that your loved ones are taken care of, even when you’re not around.
Understand the Basics of Life Insurance
Understanding the basic principles of Single Parent Life Insurance is crucial prior to selecting any policy. Single parents can choose from two basic types of life insurance:
- Term Life Insurance: This provides coverage for a specified time period, for example, 10, 20 or 30 years. It is cheaper and provides coverage for the period when children are still dependent on you.
- Whole Life Insurance: This provides lifetime coverage and accumulates cash value over time. On the other hand, it is more costly.
Which to choose between these two will depend on your available resources and the future aspirations you have for your family unit.
What to Look for in Life Insurance as a Single Parent
When selecting life insurance policies for raising a child alone, a parent needs to ensure that the policy avail manage their needs effectively. Following are the main points to pay attention to:
- Value for Money: No one wants to tax themselves overly to get a policy that will only cover the kids but clearly not be enough.
- Affordable Life Insurance for Single Parents: This should not be as difficult as single parenthood can bring some needless stress to many women looking for coverage.
- Suitable Beneficiary Provisions: For the children to benefit from the insurance money or to pass that money to a reliable custodian, they should be a beneficiary along with other custodians.
- Additional Cover: Some basic assessments come in policies such as critical illness cover or disability reserve. It may be useful in case that option insurance is available but not compulsory.
How Much Coverage Do You Need?
How much life insurance coverage is necessary depends on several factors. For example, consider:
- The future needs of your children: Will there be a need to support their education through college fees, accommodation, or general upkeep?
- Existing financial commitments: Is there a need to pay a mortgage, car loan, or any other large bills falling due?
- Expenses of a household: How much it might cost to engage someone else to look after your children and for their day-to-day activities?
As a general rule, you should consider a cover that is between 10 to 15 times your salary. In this manner, your kids will have enough resources to help them through in case you are not there.
Term vs. Whole Life Insurance: Which One’s Best?
It really depends on the individual as to what type of insurance to buy between the two. Here’s a quick assessment of both:
- Term Life Insurance: Most suited for unmarried parents who want to ensure payment for the time needed to sustain their kids. It is affordable, easy to understand, and most importantly, covers the period you parents need protection the most – when the kids are still young.
- Whole Life Insurance: If you’re looking for a solution that offers coverage for the rest of your life and also has a cash value component, whole life insurance tends to be a great choice. Still, it’s quite expensive so it’s not for everyone.
Final Thoughts: Securing Your Family’s Future
Deciding to take out a Single Parent Life Insurance is often a significant milestone with many parents. Yet, this is the best thing that you can offer for your kids. You can comprehend your specific needs and work with an expert to aid you in securing the policy that suits your family’s needs the best.
In case you feel comfortable to examine what we have to offer, the Best Life Insurance Provider is available for your assistance. Reach us and book a free consultation with us today for more information on how to enable you make the right decision for yourself and your kids.
