5 Questions Single Parents Have About Life Insurance

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Parenthood is a challenging but rewarding journey for anyone who is adventurous. Traveling can be even more challenging when you are a single parent. This is especially true when making financial decisions.

Single parents often have unique questions when it comes to life insurance. Let’s look at some of the most common questions counselors ask single parents.

1. Why do you need life insurance as a single parent?

Although insurance is beneficial for all families, single-parent families should consider life insurance as part of their financial strategy.

It may seem obvious, but it’s important to acknowledge that a single parent doesn’t have a backup parent. Unlike a two-parent family, when a single parent dies, there is no clear-cut next choice as to who will help pay the bills or care for the children. Life insurance can provide a financial safety net that can help make answering some of the tough questions easier.

Despite the importance of life insurance, single-parent families are less likely to purchase life insurance. A study 69% of single parents with children still living at home do not have life insurance. You can compare this to the 45% of two-parent families who do not have active life insurance. If you are a single parent, now is the time to create a plan to make sure your family is properly insured.

2. What can life insurance cover?

Life insurance covers the ongoing expenses for your children and dependents even after your death. These expenses include housing payments (rent or mortgage), debt, current and future educational needs, end-of-life expenses, child living expenses, child care, etc.

Life insurance is an amount you can send to your loved ones to help them continue their lives, and it’s usually tax-free. If you want to read more, Check out this article for more details on what life insurance is.

3. How much life insurance should you have as a single parent?

Considering your lifestyle, obligations, and your children’s future care and education is the first step in determining how much life insurance you need as a parent. Apart from the items we discussed in the previous question what is life insurance, add any of your family’s personal or personal financial needs.

Next, we recommend to help you further determine your needs A life insurance calculator like this one. By answering a few important questions, you can get an idea of ​​how much money it will cost your family if you pass.

Finally, you should talk to a life insurance agent to help you find the best policy and price for your needs.

4. How do you choose a life insurance beneficiary when you are a single parent?

Emergency and end-of-life planning is essential for all single parents. It is important for your friends and family to know what will happen to your loved ones if you die. So, even if the conversation isn’t fun, you should include life insurance in your end-of-life planning discussions.

Generally, a parent names their spouse or the other parent of their child(ren) as the beneficiary (death benefit cash payment). However, if there is no other parent in the picture, you must first decide who will take care of your children if you pass.

And then secondly, is this the same person you rely on to get money to take care of your dependents? They are not necessarily the same person. If you have a trusted person or professional who wants to manage your dependents’ estate, that person can be separate from the primary caregiver. You have to think about how your children will be financially supported without you. We recommend speaking with your family and a trusted financial or estate planner to confirm your plan.

Whatever you do, don’t name your child as a beneficiary—the law prohibits them from receiving life insurance benefits as minors (maybe 18 or 21, depending on your state). For more information on naming beneficiaries, Click here.

5. What type of life insurance should a single parent have?

The world of life insurance is vast and varied these days, but here are some standard options for finding the best policy for you as a single parent.

Term life insurance

If funds are limited or cash flow is tight, it can often be a single parent Term insurance A great option. Term insurance pays cash to your beneficiaries if you die during the term. In return for the death benefit, you pay a monthly premium to keep the policy active. With a term policy, if you stop paying the premium, the policy ends and the benefit goes away. This is temporary coverage until you need it or pay for it.

A single parent can usually find paying premiums on a term policy within their budget. With any insurance policy, you must submit an underwriting and determine your price to issue the policy.

Permanent life insurance

Next, there are Permanent life insurance principles. These often come as a term policy of the same size with a higher premium per month for the same death benefit. However, a permanent insurance policy accumulates cash value in addition to the death benefit.

The cash value in the policy can be used or borrowed after a specified period. When you borrow money from a permanent insurance policy, you use the cash value as collateral and the loan rates are relatively low.

If the idea of ​​a permanent policy sounds appealing, but you’re worried about having the money to pay the premium each month, a universal life insurance policy might be more your style.

As a single parent with one income, flexibility is key. With a universal life policy, you can make more flexible payment amounts as per your need in the policy. If you’re considering a global policy, it’s a good idea to work with an insurance agent to ensure you’re setting up a policy that fits your needs and situation.


Single parents have a challenging job, but having the safety net of life insurance for your children can reduce stress. If you haven’t already, reach out to a trusted insurance professional to help you start protecting your peace of mind.


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