Single Parents and Life Insurance

There are a growing number of single parent households in the United States today with their own set of needs and issues to deal with. As a single parent, you end up shouldering all the responsibilities on your own. There is no one else to help keep the household going and to look after your children in your absence. That is why it is more important than ever for single parents to look into life insurance as a key provider for your children after you pass away. Life insurance is designed as a means to replace income and provide funds to your dependents after your demise. This can prevent your children from being dependent on charity or others in order to survive. It can also act as an income for the legal guardians of your children and help them support them properly.

Much like the type of insurance policy, the coverage amount you need is also an extremely individual decision. This will depend on a number of factors such as the ages of your children, your income and assets, and the total amount of your debts and outstanding loans. Many professionals suggest coverage that is eight to ten times that of your annual income. Alternatively, you could make use of the various online calculators available and come to an amount that is affordable and meets all your requirements.

As a single parent, when choosing the beneficiary of your life insurance policy, you need to think very carefully. Most insurance companies will not make any settlements to minors so your children might not be the best option available. If you die when your children are still minors, a probate court might demand the appointment of a guardian for the insurance proceedings or that a trust is set up to handle the amount. To avoid all this, it would be more sensible to think in terms of an adult beneficiary who you can trust and who would have the children’s needs in mind when handling your insurance benefits. Talk to your financial consultant or insurance advisor to understand all your options.

Also remember that the amount of coverage you need can change over the years depending on your financial circumstances at the time. Events such as the birth of another child, remarriage, a new promotion or job, a new house or even your children graduating and moving out can affect your financial condition for better or for worse. In such situations, a re-evaluation of your insurance policy and coverage is necessary so as to ensure that your needs are taken care of.

Life insurance is something that few parents can ignore and for single parents it should be an essential part of their financial plan. Life insurance can make all those financial dreams for your children come true even if you are not around to witness them.

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About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

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Title:	Single Parents and Life Insurance
Author:	Denise
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Single Parents and Life Insurance