Life Insurance for the Single Parent

As a single parent, you probably spend more time thinking about your child's wellbeing than your own. If you are the sole provider for your child, buying a life insurance policy may be one of the most important things you can do to protect their financial future. Not sure where to start? We're here to help.

Why Life Insurance Matters

As a single parent, you are critically important to your children. If you passed away, your child might be left with little options to pay for what they need without the help of family or other caretakers.

But statistics show that single parents have one of the highest uninsured rates of any demographic. An alarming Genworth study found 69% of all single parents in the United States lack life insurance coverage

As bad as that sounds, it is easy to imagine why so many single parents are forgoing a policy. If you're already struggling to pay the bills, you may not think you can afford a monthly premium for life insurance. But, after you consider the impact it could have on your children, you may want to reconsider.

Costs

A life insurance policy may cost less than you think. In fact, in LIMRA's 2015 Insurance Barometer Study, 8 out of 10 participants overestimated the cost of term life insurance.

Single parents, especially young and healthy ones, may only end up paying around $150 a year for a $250,000, 20-year policy. That's just $12.50 per month.

Even older parents with health issues may be able to find affordable rates. An agent can help you compare rates in your area, so be sure to connect with one before you decide a policy is out of your price range.

Benefits of Life Insurance

If you die unexpectedly, a life insurance policy can cover your children's everyday expenses as well as their long-term financial needs. Your children or their caretakers could use the payout from your life insurance policy to help pay for:

Daily necessities
School supplies
Day care
Transportation
College tuition
After-school activities
Rent and living expenses for caregivers

Calculating Your Needs

When deciding how much life insurance to buy, it's important to weigh your budget and your child's needs. Your best option is to decide how much you can afford to spend and compare term life policies within your budget.

One way to calculate it is to take your current income and multiply it by the number of years until your children can support themselves. That way, they will at least have enough to maintain their current standard of living until they are able to support themselves financially.