The 2017 Insurance Barometer Study by Life Happens found that only 60 percent of respondents agreed that single parents of young children need life insurance. On the other hand, 82 percent of respondents said married couples with young children need life insurance protection.1
The difference in the survey results is confounding because single parents are often in greater need of life insurance protection than couples are. A single parent could be a child’s primary or even sole caretaker. If a single parent passes away, the child may have little financial support.
Life insurance minimizes that risk. The death benefit can be used to provide care and financial security for a child. If you’re a single parent without life insurance, now may be the time to examine your options. Below are a few tips to help you get started. Your financial professional can help you determine the correct amount and type of life insurance for your needs.
So you’ve decided to purchase life insurance. That could be a wise decision. Life insurance is a powerful financial tool that can provide critical protection for your spouse, children and other loved ones. In the event of your death, your family can use a life insurance death benefit to pay off debt, replace your income and fund major life goals.
Not all life insurance is the same, though. There are many different types of insurance, but most fall into one of two categories: term or permanent. Term insurance is coverage that lasts for a limited period of time, like 10 or 20 years. When the period is over, you can renew the coverage or simply let it lapse. Term insurance is popular because it’s usually affordable compared with similar permanent coverage.