Single parents are the ones who are handling their child all alone and this is not an easy task at all. Since they are alone to take care of their child, they need to perform many other tasks for their child when they are no more. Term life insurance for single parents can help sort out this burden and will make their child financially boosted up for the near future.
Before going ahead, you have so many questions to answer to yourself like, what if you die suddenly? Who will become the guardian to your child? If by chance you somehow decide the guardian to your child, but how would a guardian know about every minute requirements of your child? The unforeseen situation can happen anytime without your information. To make things organized and smooth going for your child, a series of documents in life insurance can be a good decision.
The way you grow and nurture your child in your life, you will also want your child to lead a happy and peaceful life after your death. To decide which plan will be the best one to consider can be a daunting task. Some prior knowledge and a detailed analysis can help you choose the best plan for your child. Life Insurance for single parents will boost up your child financially in all aspects. Let us have a look at some of the points.
Why do you need life insurance?
#1: Education cost
With you being the sole owner of your child you have to think so many things for them. Apart from bread and butter, the main thing could be an occupation which can again be earned if you are well educated. In this era, we all know how costly is education if you have to provide it in from a known institution and you will always want to give “the best” to your child. The education cost increases as the standard and stream gradually increase. Higher studies from any reputed institution can cost you a lot.
You keep on adding to your savings for this special purpose when you are there but what if you are no more to educate them? This situation can make your child’s future dark and hence life insurance for single parents is required.
#2: Debts and any financial obligation
Debt is a mighty insect that can kill you internally. Some people are smart enough to take debts occasionally and clear them but for some, it is a huge burden. If a single parent has any debt, then it becomes one of the most important things to consider during your lifetime. Debts might include; the home loan, car loan, loans on interest to somebody, and many? What if you are having debts and you have a child and you pass away accidentally?
To avoid any kind of hassles and problems in your child’s life, every single parent must have a life insurance policy.
#3: Cost of nurturing and raising your child
Nurturing and raising a child is probably the toughest task for any parents and especially if you are a single parent, you need to be extra cautious about it. No one would ever take care of your child as you can but what if you are no more?
It looks like caring and raising a child does not cost much, but the truth is that all small expenses pile and become big as a whole. So, the term life insurance for single parents and the amount of life insurance strongly depend upon your child’s needs and age. Decide diligently and take the life insurance plan.
#4: The Beneficiary of the policy
Apart from some above-mentioned points, one of the most important things to look after is the name of the beneficiary. Beneficiary name in life insurance for single parents matters a lot. It solely means that the named beneficiary will receive the total benefits of life insurance after your demise. It is very important to name a beneficiary after thoroughly grilling everything because the law does not allow the benefits to be given to a minor.
Read Also: 9 Tips On Who Should Be Your Life Insurance Beneficiary?
Somehow if you do not name a beneficiary properly, the court will appoint a guardian (lengthy and a costly process) until your child reaches adulthood. Why would you ever want your money to be wasted like this, hence name a beneficiary well in advance.
#5: How much insurance do you need?
Now another important task that a single parent might think is how much life insurance a single parent requires? You are the one who will be paying the premiums and hence, it can be decided based on your income. After calculating your expenses, you can decide on your premiums which are a huge and important saving.
A mother is always very important for any child and hence all life insurance companies ask for a lower premium amount. It is also because the risk factors associated with a female is lower as compared to males. Therefore, if you are a female and a single parent; you would pay lower premiums. This is one of the ways where you can save.
Read Also: 6 Ways to Measure How Much Life Insurance Do You Need?
Term Insurance plans are the best ones to choose from any life insurance company. They do not have many risks and their payout is also very good. A most common suggestion is to go with the term insurance plan if you are a new buyer. It is fairly enough if you take a life insurance coverage which is 10 times more than your annual salary.
To conclude:
Life Insurance is an important part of anyone’s life but it becomes more important if you are a single parent. The responsibilities against your child are endless but some of them are easy to handle by a life insurance plan. Choose a life insurance plan with the help of an insurance advisor and then proceed. Until now, you might be completely prepared as you have jotted down major points of life insurance as a single parent and an easy-going life can be seen ahead.
