As a single parent, your primary concern is the well-being of your child. To provide for them in the fullest capacity, though, you have to consider the unlikely worst case if you were to pass away. An essential precaution you can take is a life insurance policy with a dependable insurance company, and it can be more affordable than you think. 

Why Single Parents Need Life Insurance

Funding Your Child’s Needs

If something happens to you, a trusted loved one will take responsibility for your child. Unfortunately, the cost to raise a child is substantial—more than $233,000 on average—and in the case of a sudden passing, it can create a financial shock as well as an emotional one. A life insurance policy can look out for your child and their guardian, providing funding for any of their needs as they grow up. 

Paying off Your Debts

The average person carries a car payment, mortgage, or student loans with them for a significant portion of their life. When you die, it’s possible that those closest to you can become accountable for your outstanding debts. Life insurance can be pivotal in assuring that you don’t leave a financial burden in the wake of your passing. Also, the immediacy of a funeral can cause a financial strain on those closest to you, and life insurance can ease this concern as well. 

Types of Life Insurance

Term Life Insurance

This type of life insurance covers you for a given period of time, like until your child grows up or until they graduate college. The policy the insurance company provides will only pay out if you pass away before your term is up. Even though many single parents don’t consider this option because of the cost, term life insurance is an affordable option for single-parent households, and it can provide ample coverage for most families. 

Whole Life Insurance

In contrast, a whole life insurance policy covers you for your entire life. While it has higher payments, it also has a “cash value.” Basically, the insurance company takes part of the premium you pay and creates a savings component to the policy that accrues a dividend tax-free. After having the whole life insurance for an extended time, policy owners can cash it out, borrow from it, or even use it to pay the existing premium. This more expensive option isn’t necessary for those on a budget, but it can be an excellent way for single parents to provide for their children and themselves in the long-term if they can realistically afford the premiums paid to the insurance company.

If you’re unsure where to start with a life insurance policy for your family, a trusted real estate agent can guide you to a choice that fits your budget. In Elyria, OH, families have relied on Somers Agency LLC with personalized insurance solutions for over a century. With expertise in everything from auto and life insurance to commercial liability and more, their team can help you find an insurance policy built for your life and your needs. For more information about how this insurance company can help you, call (440) 324-3447 or visit them online today.