Single parents have some special considerations when it comes to insurance. Here are a few things to think about before choosing a policy.
As the sole provider in their family, single parents have to make major decisions without the support or affirmation of a partner, and that can leave them second guessing themselves.
When it comes to choosing various forms of insurance, every decision is a major one that can have a profound impact on the family should a serious incident take place. If you’re a single parent and you’re feeling uncertain about making insurance decisions, here are some tips to bring you a little clarity and confidence.
Plan Your Life Insurance Carefully
You’ll be required to choose beneficiaries of your life insurance policy. Without a partner, the next most logical choice would be for the money to go directly to your children. However, depending on the age of your children, the money will likely have to be held in trust for them by an appointed guardian. Alternately, you may direct a certain amount of money directly to their appointed guardian as compensation for caring for your children. Essentially, this is a complex decision that needs to match up with your will, and may need to be revisited every few years. Take your time and plan carefully.
Don’t Cut Corners
When you’re the sole provider for your family, sometimes money can be a little tight. If you’re in this situation it might be tempting to go for policies with less coverage or to forgo certain types of insurance altogether. However, you have to remember that insurance is an important investment that can ultimately save you money. You might not think you need a short-term disability policy, but should you find yourself unable to work for a period of time as a result of short-term disability, you’ll be scrambling to make ends meet.
Don’t Assume Serious Injury or Illness Will Never Happen to You
If you’re young, active and healthy and work in a low-key job, you might think that you’re not at risk for serious illness or injury. That simply isn’t the case. Anyone can face a sudden illness, and with no partner to pick up the slack financially, you’ll be struggling without insurance.
Accident Insurance for the Family
Many parents have accident insurance for themselves so that they’re covered if an accident prevents them from working. As a single parent, you should also have an accident and health insurance policy for your children. Often when a child has a serious accident or injury, one parent must stay home for a time to care for them. Because there is no second parent bringing in income, you need to be covered so you can care for your child with peace of mind.
Cover Your Child with Life Insurance
The thought of losing a child is awful, but it’s a thought that must be considered when choosing insurance policies. Many parents find themselves unable to work as they grieve and recover from the loss of a child—it may be years before you’re comfortable heading back to work. By taking out life insurance policies on your children, you are allowing yourself the time to grieve, and will have funds for their funeral expenses.
