Securing your single parenting journey: life insurance as a financial safety net

Parenting is a rewarding yet challenging journey, with an endless list of responsibilities, from daily activities to long-term planning. Single parents often face an even more demanding and complex task, especially if they are their children’s sole caregiver. According to Life Happens’ new survey, “Single Parents and the Financial Future,” three-quarters of single parents reported feeling overwhelmed, and more than a quarter (27%) admitted to feeling very overwhelmed.

Single parents estimate they would need a minimum of $332,705 in savings to feel financially secure raising their child. Ensuring their children’s financial well-being is a concern that crosses the minds of single parents approximately five times a day. However, the survey reveals that four in ten single parents did not begin planning for their child’s financial future until the child was between 4 to 6 years old or even later, with only 10% starting before the child’s birth.

Planning for the unexpected

As a single parent, it’s crucial to consider the potential consequences if you were no longer in the picture. Have you pondered the question, “Where would the funds come from to support my children?”

Surprisingly, only half of single parents have purchased life insurance to secure their children’s financial future, while more than a quarter (28%) would rely on crowdfunding sites to raise money for their children’s needs. However, many people overestimate the cost of life insurance by three times or more, according to the 2023 Insurance Barometer Study by Life Happens and LIMRA.

The reality is that a healthy 30-year-old can obtain a 20-year, $250,000 level term life insurance policy for around $200 a year, or approximately $4 a week. This investment can provide your child with a secure future should something happen to you.

Overcoming obstacles to life insurance

Don’t let uncertainty about the amount or type of life insurance to purchase deter you from obtaining coverage. To get started, use our Life Insurance Needs Calculator to estimate how much you may need.

Here are some steps to help you navigate the life insurance process:

  1. Determine your needs: Consider your financial obligations, such as mortgage payments, outstanding debts, and future expenses like college tuition.
  2. Research options: Familiarize yourself with various life insurance types, such as term life and whole life insurance, and choose the one that best fits your needs and budget.
  3. Consult a professional: Reach out to a life insurance agent or financial advisor to help you tailor a policy to your specific situation.
  4. Reassess periodically: Regularly review and adjust your life insurance coverage as your financial circumstances change.

Life insurance is an essential tool for single parents seeking to secure their children’s financial future. By addressing the need-gap and exploring the various benefits of life insurance, single parents can provide peace of mind and ensure a stable environment for their children. Don’t leave your children’s future to chance—take action today to create a safety net for their tomorrow.

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