Being a single parent is not easy. Raising a child is hard enough when there are two parents, but when there is only one, the costs are higher. Single parents often bear the entire weight of a child’s financial security. This is especially true if another parent isn't in the picture.
As a single parent, you want to do everything possible to give your children the best future. But, an unfortunate reality is that single parents may die before their children grow up.
What happens to your children then? How will they afford college, medical care, and sustenance after you are gone?
Many single parents wonder how their death would affect their children. One option for many single parents is to buy a strong life insurance policy.
However, many single parents may not have a life insurance policy. Some might think it is too expensive. Others might question its merits.
Why Single Parents Need Life Insurance
In the event of your death, the loss of income and any other benefits may affect your dependent children. You want to make sure that the children are provided for.
Life insurance can help. Your children can be beneficiaries for the payout. It can help them with future needs like education and health care.
How Much Insurance Do You Need
There are many factors to consider when determining how much life insurance you need. Life insurance policies can range from thousands to millions of dollars.
You should always consider various factors when buying a policy. Ask yourself how much money your children would need to survive comfortably if you die? Consider things like your children's age, health, the amount of your lost income and other factors. They all contribute to the amount of life insurance you buy.
Secure the Money
Make sure that you not only purchase life insurance, but that you protect it. That way your children will benefit from it as long as they need.
You should first appoint a trusted guardian for your children. The guardian should be a person who will provide loving care for the children. He or she should also respect any payouts your children receive. You also want to make sure that the guardian has what he or she needs to properly raise the children.
You should also work with legal counsel to determine when your child will get the money. This life insurance may go into a trust, or a savings account, that a conservator manages. Your child may only be able to access certain amounts of the money at a time.
Different states have different laws regarding children who inherit while underage. Your lawyer can advise you on how best to secure your life insurance policy.
Getting life insurance as a single parent can be a difficult process. There are many things to consider. But, one thing is certain. Having life insurance will give your children financial security in the event that you pass away.
Do you have questions about securing the best life insurance policy? We are here to help. Contact us today.