Insurance for Single Parents – Why You Need It and How to Buy It

For single parents, insurance is a top priority that must be part of any financial plan. If you’re a single parent, the question comes up – why is it is more important for you than for other families?

Well, you are the only source of comfort and support for your children, and if something were to happen to you, how will their expenses be covered? Couples have a little more leeway because the chance of something happening to both of them at the same time is very low. As a single parent, that leeway is gone.

Here are a few things to consider about insurance shopping as a single parent:

1. Term Life Insurance is Affordable and SimpleA term plan is affordable and flexible, involves less paperwork than a permanent plan and lets you choose the period or term you prefer. You can also upgrade to whole life plans later, while remaining secure in the knowledge that your kids have financial support even if something happens to you.

   In addition, while the policy is active, the monthly payments from it also help offset your family’s expenses. It fits perfectly into the plans of the single mom or dad – you don’t have to stop being single just so your child has the added security of a second parent!

2. Instant Issue PlansInstant issue insurance can be purchased instantly, with no medical exams or long and complicated application process. It’s no different than buying apparel at an online shopping store, since you can pick a plan, select the term or policy type and make a credit card payment within a few minutes of receiving an answer.

   Instant issue makes it possible to buy insurance online without touching a single page of paper, except when you print out your new policy. However, it may cost more than other plans, which calculate premiums based on your health and various other factors.

3. Pick the Duration of Cover that You NeedWhen you’re buying insurance, the question arises – What term should you choose? The answer lies in looking at the duration of the longest expense you are currently incurring.

   For instance, if you’ve bought a house on a loan duration of 20 years, the coverage term should be no less than 20 years. This way, if something goes wrong, at least you don’t have to worry about mortgage payments – the insurance will help you take care of it.

4. Sooner is Always BetterAge is a major deciding factor that affects how insurance companies calculate the total price of a policy, because the risk of injury, sickness or death increases as you get older. This is the main reason why you should buy insurance as early as you can, instead of postponing it to later years.

   Other than the price factor, the sooner you have a plan in place, the sooner you can lay any worries about your children’s financial security to rest.

5. Pay Less for MoreInsurance will always cost money, but it’s possible to get more for less. Don’t just look at the premium you have to pay. Look at the overall benefits and payouts, as well as understand and compare ‘price breaks’ that exist at different levels of coverage, to see which plan is most affordable.

   Many insurance companies offer discounts depending on how much you want to pay at one time. For instance, if you were to pay monthly, the insurance cost will go up but if you were to pay annually, the cost comes down drastically.

6. Keep Track of Existing and New PoliciesInsurance is just like any other financial investment. Depending on how the economy is doing, there may be cheaper policies being offered by another company, or additional discounts (e.g. an auto loan discounts with car insurance plans) to consider.

   Sometimes, even your current insurance provider might have something better to offer, so look into new policies every once in a while. Remember, when you replace your current policy with a new one, wait till the replacement takes effect before you cancel your existing coverage.

Other Types of Insurance to Consider

Now you know why life insurance is important to you as a single parent, but you should also look into:

• Disability Insurance – This will provide your family with income replacement if you were to become disabled.
• Critical Illness Insurance – This will cover the expenses of life-threatening or critical medical conditions.
• Long Term Care Insurance – This will ensure that any expenses arising as a results of the need for extended medical care will be covered.
• Accident Insurance – This takes care of expenses borne out of an accident, ensuring that your family’s finances are affected minimally.
• Life Insurance for Children – These plans cost very little and can provide extensive coverage for your kids.

As a single parent, you’re primarily worried about ensuring your kids receive the care and support they need, no matter what happens. Consult a reliable insurance agent, pick out a plan and enjoy the peace of mind that comes with keeping the family’s assets (including yourself) protected!