Whether you’re up all night with a newborn, dealing with a kid who’s getting into trouble at school, or trying to keep your teen safe, you already have enough problems to worry about as a parent. That’s why having life insurance and knowing that your family is protected helps you sleep a bit more peacefully at night. This is especially true if you’re a single parent. That is because you can't readily rely on a partner to cover your kids’ expenses if you were to die.
How do you make sure you’re getting the coverage you need as a single parent? Keep these tips in mind when you purchase life insurance:
Get advice on how much life insurance you need
Life insurance is complicated (just like the trivia question that stumped you last night). So when you choose a policy without customized advice that’s tailored to your needs, you can run into one of two big problems: you may leave your family with much less than they need (“underprotection") or you may find yourself struggling to save for retirement because you spent too much on insurance (more on “overprotection" here).
You'll want to talk to somebody who knows the industry and can give you unbiased advice. It's important to note that most insurance agents are paid through commissions, making it hard to truly give unbias advice. They're only paid when you make a purchase, after all!
If you need help determining your life insurance needs, feel free to reach out to us at PolicyMe! Our team is salary-based, not commission, so our advisors can help you figure out your genuine needs.
Choose a policy length that covers your children
Because life insurance renewals are expensive, you should avoid them at all costs. How? Buy a policy with a term length that covers you for only as long as you need.
This doesn’t mean you need to buy life insurance for the longest period available, which could be expensive and completely unnecessary! But you want to ensure that by the time your policy expires, you have enough money saved to cover your children’s needs if you were to die.
Identify a trustee
It’s important to know that life insurance companies won’t pay out claims to minors. So if you don’t make arrangements before you pass, the court has to appoint a legal trustee to oversee the payment of your death benefit on your behalf.
Don’t like the idea of leaving your kids in a sticky situation? You can avoid this mess altogether by either naming a trustee when you take the policy out (which is usually required)
Finally, don’t wait
Remember that every day that you don’t have protection, you run the risk of getting sick. And any health conditions that you develop later in life will only lead to higher rates (remember when we talked about the factors that affect life insurance pricing?)
Life insurance for single parents: putting off this purchase could cost you
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