Being a single parent in today’s world can be a daunting and frankly scary in and of itself, but we live in strange times where the certainty of life is measured in the precautions one takes, and even then, it’s sometimes down to luck.
The pandemic ravaging the world is just one example of why buying life insurance can make all the difference in your child’s life, and it doesn’t have to be pricy either.
Life insurance isn’t just for married couples
It is usually thought that married couples need insurance more than a single parent.
Studies have shown this to be false.
In a recent study conducted by the Pew Research center, 23% of children and young adults live with one parent.
And that is in the U.S alone.
A massive 83% of single parents in the states are women.
Out of those, a whopping 59% of mothers do not have any health insurance whatsoever.
Raising a child alone is not an easy job; unforeseen circumstances always arise where having life insurance can come in handy, such as for medical and educational bills
And it can have an adverse effect on the child’s quality of life if the other parent is not around to shoulder some of these responsibilities, which makes having insurance even more paramount.
Truth be told, it all comes down to the fact that if you have someone who depends on you to survive, then life insurance should not be overlooked.
Types of life insurance
There are many common types of life insurance, but they always fall into two categories.
Term life insurance
More flexible of the two, term life insurance plans are usually short-term and can be planned around a specific time.
These plans are usually cheap and payout if you die within the specified term.
Permanent life insurance
As the name suggests, permanent life insurance policies cover your whole life. Conveniently, these policies have a ”cash value” mechanism incorporated in them.
Basically, after some years of growth, you are eligible to borrow against the value of your insurance. This can come in handy when life decides to give you lemons.
How much life insurance do I need?
This is the most important question of them all, and it depends on a lot of factors.
The first thing to look at is your income, and match that up against all the expenses and debts, unforeseen and anticipated that you may come across.
It is a good idea to have your coverage amount to about 15 times your income. It is also preferred that your insurance term should cover the period of your longest debt term.
Who to name as the beneficiary?
Naming a beneficiary may not be as simple as you think; there are many points to consider including whether they can even claim your insurance policy.
The main one is that you cannot by law name your children if they are underage. The next best thing to do is to appoint a trusted guardian for the children who will take care of them if necessary.
Short-term Health insurance
This is a brilliant option; it is useful for when you need temporary benefits while waiting for your new health insurance term to start.
How to Renew a Suspended LicenseFinal thoughts
It’s pretty obvious that the pros outweigh the cons when it comes to insurance, be it for yourself or your kids. Nothing beats having the peace of mind that your children will be secure should you no longer be around.
It’s very easy to find affordable plans that are right for you with a little research. You can also get help from a trusted insurance advisor like Dundas Life. It is helpful to check health portals from your local government to get started.
