Why is it important for single parents to buy term insurance?
by Being a single parent is difficult, and the prospect of leaving your child unprotected after you is a nightmare that no one wants to experience. That’s why term insurance may be an effective tool for protecting your child from life’s uncertainties. Term life insurance for single parents provides security and safety to single parents and their children. In this article, we’ll look at the reasons and how to choose the premium amount.
Does it really make sense to buy term insurance for single parents?
Many individuals think that life insurance is only important for married parents. However, the fact is that if your death would have financial consequences for anyone, you should get life insurance. Divorce, death, and unwed mothers are some of the reasons why one ends up raising a child alone. Doing so is difficult, especially financially. With the increasing expense of raising a child in India, single parents must prepare for the uncertainty, including the risk of premature death. In these cases, life insurance is critical for financially protecting both the parent and the kid. With the help of a term insurance calculator, you will be able to calculate the sum assured you should choose depending on your finances.
3 reasons why single parents should purchase a term insurance policy
1.Helps you cover the cost of your child’s Education: Parents prioritize their children’s education and profession and would never compromise on it. However, the expense of education in India is steadily rising. The fees of good universities might cost anywhere between Rs 20 and Rs 40 lakh, which can add quickly if you have more than one child. Even if you make monthly contributions to college accounts, what happens if you die? Choosing adequate life insurance coverage with the help of a term insurance calculator is an excellent strategy to ensure that your children enjoy a high-quality education without incurring significant student loan debt.
2.Financial responsibilities: Parents must evaluate how much debt and financial commitments they will leave for their children once they die. Loan payments, car loans, and house loans are among the most common expenses. If you have debt, you should choose a higher life insurance coverage that will cover it. This will keep your loved ones away from being financially burdened in your absence.
3.The Cost of Taking Care of the Child: Single parents have to consider the cost of caring for their children after their demise. This covers essential requirements such as food, clothes, transportation, and medical bills, as well as general expenses if you have a younger child. It is essential to consider these expenses in the context of your overall financial situation to ensure that the individual who will be parenting your kid in your absence has adequate financial assistance. The amount of term life insurance needed is determined by your child’s age.
How much coverage should one get as a single parent?
The second major concern that every parent has is how much term coverage would be adequate for their child. There are a few key criteria that might help you determine the answer to this question. They are:
How much do you earn?