As a single parent, it’s up to you to protect your children in all eventualities. Since virtually anything can happen, that means purchasing adequate life insurance. While all parents should buy coverage, it’s especially important for those who are raising their kids alone to invest in a policy that will ensure their children’s financial security in the event of an untimely passing. If you’re unsure how to get started, the following information should help. 

Why Life Insurance Is Essential 

Purchasing a life insurance policy as a single parent will ensure your children have a safety net no matter what happens. With sufficient coverage, they’ll be able to manage living expenses, attend college, and even buy real estate should they lose your financial support before reaching adulthood. This, in turn, will provide you with considerable peace of mind.

How to Determine What Kind of Insurance You Need 

There are two primary kinds of life insurance: term and whole. Term is for a set period of time—typically 20 to 30 years—whereas whole is for the duration of the policyholder’s life. As such, term life insurance is considerably more affordable than whole life insurance. 

Term policies are what most people think of when they hear the phrase “life insurance.” If the policyholder dies while the arrangement is in place, the named beneficiaries will receive a payout. Whole life insurance, on the other hand, is a kind of investment. It has a cash value from the day you purchase it, and this increases gradually as you pay into it.

For single parents looking to protect their children’s financial future, term life insurance usually makes the most sense. Not only is it more affordable from month to month, but the beneficiaries won’t necessarily need a safety net once they've reached adulthood and entered the workforce themselves. As for the total amount you should purchase, that will depend on a variety of factors. Examples include your children’s ages, your own net worth, and whether you wish to cover major expenses like college tuition, weddings, and real estate purchases. 

If you’re ready to discuss your needs with a knowledgeable professional, turn to David R Johnson Insurance Agency Inc. Serving clients throughout Beech Grove, IN, he works for one of the largest insurance companies in the country. With nearly three decades of experience, David R Johnson knows how to get his clients the best rates possible through State Farm. To make an appointment, call (317) 782-8858 and then visit his website for directions to his office.