Single Parents: Do You Have the Life Insurance You Need?
The Importance of Planning Ahead
As a single parent, you’re probably used to getting things done by yourself and provide for your family as best as you can. But what if something were to happen to you? Who will provide for your kids? In addition to having a Will, you should really have life insurance to be sure that your children will be financially provided for in your absence.
Life insurance is especially important for single parents, particularly if there is no back-up breadwinner for your children to rely on. The good news is you can usually get affordable life insurance through your employer if you have a full-time job. If you don’t have that option you will need to do some research and find an insurance provider that works for you. Take the time to scout out life insurance quotes on term life insurance, whole life insurance or a mix of both, if you haven’t already.
How Much Life Insurance should a Single Parent Have?
The amount of insurance you should buy is generally equal six to eight times your annual salary. There are a few factors that would determine how much you would have to pay for life insurance. Some factors are your age, and whether you have any pre-existing conditions. You also want to decide whether you want term life insurance or whole life insurance. And you definitely want to shop around for the best prices. Find a policy that works within your budget. You should be able to find a policy whose monthly payments are manageable.
Are there Other Sources of Income I Could Pass to my Children?
As you consider purchasing single parent single parent life insurance to protect your children’s future, look into other potential sources of income that can be passed on to your children. This could include retirement plans, other savings and Social Security. Doing these things could provide you with peace of mind should something unfortunate happen.
If you pass away before your kids are 19, they may be eligible to receive your Social Security benefit. Disabled children and elderly parents who depend on you for at least half their income may also receive “survivor benefits.” Questions on how much you can expect to receive on your Social Security benefit can be answered by visiting the Social Security Administration’s website.
Make a Plan for Your Children’s Future
Financial planning can be a difficult exercise for most people to wrap their minds around, but for the single parent it’s important to consider. It might be a good idea to visit with a financial planner if you aren’t confident about what type of savings plan you should have in place for your children. But as you have been able to provide for your children on your own in the past, protecting their future is just one more thing you can do as a strong single parent.