From household bills and groceries to doctors’ visits and clothing, single parents take on the full responsibility of raising a child. Despite the lack of sleep and constant demands, the only thing every parent truly wants is to protect their child. One of the best ways to accomplish this feat is a life insurance policy. Here's a closer look at what you need to know about choosing coverage as a single parent.

A Guide to Life Insurance for Single Parents

Why It's Important

In a single-parent household, all of a child's financial needs are met by one earner. If something happens to you, then they lose all economic support. With a quality life insurance policy, you can ensure your children have financial stability after your passing, regardless of who becomes their caregiver. You can also cover their future expenses, like college tuition, to give them the best chances for success upon entering adulthood.

What Are the Options

There are two main styles of life insurance: term and whole. Term life insurance is purchased for a specific duration, typically ranging from 10 to 30 years. With this arrangement, you have the option to make sure there's coverage in place for the remainder of your dependent's childhood without any long-term commitment. Additionally, term policies are associated with lower monthly costs, which is beneficial to parents on a tight budget.

Whole life coverage is a permanent style of protection. When you purchase a plan today, it'll still be in effect when you're 70 years old. While whole life plans are usually more expensive, they provide long-term protection for your family. Most policies in this category also offer a cash-out option, so you can use the invested money down the road if desired.

How to Choose an Amount

One of the biggest challenges for single parents is determining how much coverage they need. For this process, you need to consider a variety of factors. First, calculate your total number of debts, including your mortgage and remaining auto loans. Next, factor in your yearly income multiplied by the number of years until your youngest child reaches adulthood. Finally, consider additional costs that you want to cover in the future, such as college.

Learn more about your life insurance options today by turning to the experienced team at Mitchell Insurance Agency LLC. The locally owned and operated company has proudly met the coverage needs of residents and businesses across Texas County, MO, since 1949. Take a closer look at the insurance agency's policy options online or request a quote today by calling (417) 967-2140.