Life Insurance and the Single Parent: Why You Can't Afford Not to Have Coverage
Being a single parent is equal parts joy and challenge. And for those parents with the weight of their child's future resting squarely on their shoulders, one terrifying question looms: what would happen to those who depend on you alone, should something unexpected happen to you?
Are you prepared to take care of your children, even when you're no longer around? A frightening thought, to be sure, but one that also sheds light on a startling and equally scary fact. Single parents are significantly less likely to have a life insurance plan in place than their married counterparts. In fact, according to a 2012 study, despite having more need for coverage than two-parent households, 50 to 70% of single parents currently have no life insurance.
Knowing how essential it is to be able to provide for your family even if you are no longer physically there to do so, why then do so many single parent households opt out of purchasing life insurance policies? The answer, for many parents, is that they believe financial protection is unaffordable. For others, the idea of finding a plan and creating a will just seems too daunting of a task.
The reality, however, is that life insurance is available and affordable for almost every income bracket. In fact, for roughly the same cost as a fast food dinner or two tickets to a Sunday matinee, just about every parent can purchase a little financial peace of mind. And with so many online resources available to the average person, you no longer have to feel alone in your quest for life insurance.
One of the most simple and affordable approaches to life insurance is a term plan. Term life insurance provides a lower premium for life insurance that is good for a specific amount of time. These term plans usually provide protection for 10, 15 or 20 years. If you die during the term in which your policy is in force, your benefit is paid to the beneficiary of your choice.
Additionally, many of the term life policies offered today come with the option to convert them to whole life or permanent life insurance policies within a designated period of time. That means you could conceivably get yourself $250,000 - $500,000 worth of coverage for roughly $30 a month.
That security means that if something should happen to you, your children would still be able to afford things like a college education, a home, a wedding, and even something as simple and essential as peace of mind. Being an uninsured single parent can hold devastating repercussions on the lives of the ones you love most. With a little research and a few extra dollars a month, you can be sure that no matter what happens to you, you will still be able to take care of those that count on you.
About the author: Seth Gowdy is the Sales Manager for Pivot Insurance and holds multiple insurance and securities' licenses. He has been part of the financial services industry for nearly 20 years. In his free time he enjoys being outdoors fishing, hiking, and geocaching with his wife and two children. Seth most enjoys helping clients with Pivot’s customized process and needs' calculators. You can reach Seth at 1-800-651-1953 or firstname.lastname@example.org.
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