From paying for food to making sure their children have all that they need, single parents typically shoulder the responsibilities on their own. Should a job loss or even a death occur, the kids will still need financial resources to carry on. This is where life insurance provides peace of mind. Here is a helpful guide on what single parents need to know about this important coverage.

Why is it Needed?

Life is full of the unexpected. For single parents, a financial emergency can throw their kids’ lives into a tailspin. Day care costs, school supplies, clothing, and college tuition are just a few of the many expenses single parents have to cover. The responsibility is even greater if there is an absent parent or one who isn’t paying child support. Should something happen to you, you’ll know your kids are financially covered with a trusted life insurance plan.

What Types Are Available?

The two most common types of coverage that may appeal to single parents are term and permanent. Term life insurance is available in different terms such as 10, 20, or 30 years. You select the term and pay the fixed monthly premium. If you die while the policy is in place, your kids receive death benefits. You can’t make withdrawals from a term policy before you die. This type of coverage tends to be cheaper compared to other plans.

The main component of permanent life insurance is as long as you stay current with the fixed monthly premiums, the policy is in place for life. Over time, the plan accumulates cash value, and you can borrow money against it. The entire policy can also be surrendered for cash. If you plan to borrow money to pay for expenses for children, it reduces the amount of the death benefit if you die. Surrendering the policy for cash means there will be no death benefits available, and you will need to secure another permanent life insurance plan.

How Much Do You Need?

Determining how much coverage you need depends on several factors, such as your current income and outstanding debt. You will also need to consider how young your children are, who will care for them should you die, and how much is needed to provide that care. If your children plan to attend college, how much of your life insurance policy will cover the costs? An experienced insurance agent can help you make the best calculations.  

If you’re a single parent, making sure your children will be financially provided for should be a top priority. Since 1996, Lighthouse Agency in Fairfield, OH has been the locally owned firm families continue to turn to for customized guidance. As an independent agency, the team of professionals works on your behalf by shopping for the competitive rates from the nation’s leading carriers, including AAA®, Progressive®, Safeco®, and Ohio Mutual®. For a free, no-obligation insurance quote, call (513) 860-9100 or visit the website.