Are you basking in the joys of single life or faced with the challenges and opportunities of being a single parent?
Living independently, managing your life and the lives of others single-handedly clearly has advantages and disadvantages for all involved. Yet, there are important issues to be addressed. Is it necessary to purchase a life insurance policy if you’re single? As a single parent, what type and how much life insurance is necessary to preserve your family’s quality of life?
Life Insurance for Single Parents
According to the U.S. Census Bureau report issued in 2009, Custodial Mothers and Fathers and Their Child Support: 2007, more than one-quarter (26.3 percent) of all children under 21 years of age lived with one of their parents, while the other parent lived outside the household. In essence, one out of every four children is being raised by a single parent.
“The demands of raising a family on your own can be challenging, especially when you consider current as well as future needs,” said Gary Lardy, CEO of IntelliQuote (www.intelliquote.com), a leading online life insurance company. “As a single parent, it is extremely important to create a long-term plan that supports the financial security of your children. Purchasing life insurance can help in making certain your family’s wants and needs will be met, regardless of what the future brings.”
Term life insurance, providing protection for a defined period of time, is a desirable choice for a single parent as it is also one of the most affordable types of life insurance and can help cover the costs of raising a child into early adulthood. Parents can estimate how much life insurance is needed to ensure a financially-safe future for family members at www.intelliquote.com.
Accepting the responsibility for ongoing expenses should be of particular importance to single parents and single people. According to Lardy, setting aside funds in a life insurance policy can help ensure most final expenses are covered; including funeral expenses, debts, automobile, and mortgage responsibilities.
Life Insurance for Single People
As a single person living on your own, you may not be especially concerned about your personal insurance coverage. However, your death may place a significant burden on others.
“Singles often don’t realize the magnitude life insurance plays in protecting themselves and their loved ones from financial difficulties should the unexpected occur,” Lardy said. “In fact, life insurance for single individuals provides a critical savings safety net, is a wise investment choice and could also be a vehicle to pass along a legacy for loved ones.”
There are tremendous benefits associated with life insurance policies for single people currently supporting loved ones. Should a single person be a joint debtor with a family member, or helping to support family members through difficult situations, a life insurance policy will ensure any joint investment situations are covered and those named as beneficiaries receive financial assurance.
If there is a desire to establish a legacy for the future, a life insurance policy can also be paid to a trust, establishing a tax-free legacy unlike any others for friends or family. Policies can also be written to be paid out in the establishment of a fund for a favorite charity or organization. In addition, life insurance can be an especially effective savings tool for single people. Some life insurance policies are specifically designed to enhance financial planning, including the ability to accumulate cash value that grows over time.
“We encourage everyone to explore life insurance options and gather life insurance quotes through a trusted advisor or reputable agency,” said Lardy. “Taking responsibility now will help buffer your family from financial burden and preserve your future legacy.”