Life insurance is one of the most important purchases a parent can make. This is especially true if you’re raising a child on your own. As the person responsible for taking care of your child’s needs, you must ensure they will continue to be provided for should you pass away before they become financially independent. Here’s what you should know to make sure you obtain the right coverage.

A Single Parent’s Guide to Life Insurance 

Why Single Parents Need Life Insurance 

The costs involved in raising children are high. As a result, it’s essential to make sure the person who would become guardian of your children in your absence is able to manage those expenses without being financially burdened. Life insurance can be used to pay for clothing, food, medical care, activities, and anything else they need. If you have any outstanding debt, coverage will help pay it off instead of it passing to co-signers or taking away from your assets. Your policy can also be used to cover funeral and burial fees, which often amount to thousands of dollars.

Term vs. Whole Life Policies 

There are two main types of life insurance options: term and whole life. Term policies are generally less expensive, and they’re designed to last a certain length of time. Whole life policies remain in place for as long as the policyholder is alive and include a cash value component. If you’re on a limited budget and your primary goal is to make sure your children are provided for until adulthood, term life insurance may be the better choice. However, if you want continued coverage and the opportunity to build up funds you can use at a later date, you may want to choose whole life insurance.

How Much Coverage to Buy 

To determine how much life insurance you should buy, there are several factors to take into consideration. You’ll need to look at how much income you make and what your children will require to maintain their current standard of living. Also, figure out the total amount of your debts and how long you want the coverage to last. Finally, think about any long-term expenses you wish to provide for, such as college tuition. 

If you’re ready to give your children financial security, turn to Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA. Offering more than 16 years of experience, she will help assess your family’s unique needs to ensure you end up with the most suitable life insurance solution for your situation. She’s proud to provide residents throughout Alleghany County with reliable products and unparalleled personalized service. Call (540) 968-1569 to set up an appointment, or visit her online for more information on how she can assist you in planning for the future.