5 Reasons Single Moms Should Buy Life Insurance
Single mothers are mothers who do not live as a couple and raise their children on their own. Single mothers can have one or more children. Some women choose to become single mothers, while others do so due to unforeseen circumstances, such as the death of their spouse or divorce.
Single mothers face unique challenges and have distinct needs. Some single parents may struggle financially, while others lack family support. Single parents may be tempted to cut back on spending, but they should invest in life insurance. Let’s take a look at some of the reasons single moms should have a life insurance policy.
1. It can be very affordable
Buying auto insurance for single mothers can be difficult, but you can find affordable auto insurance through insurance comparison resources. Single parents often pay significantly higher rates for auto insurance. Access an insurance comparator and enter your postal code. The tool invites you to answer questions about your vehicle, your gender and the number of vehicles you wish to insure. The tool uses your information to compile a list of insurance companies that can provide the comprehensive coverage you need at an affordable price.
Saving money on your monthly auto insurance premiums ensures you have the money you need to purchase a life insurance policy. You may even be eligible for a discount from your insurance company if you bundle life, home, and auto insurance policies. A comparison tool will provide information from reputable insurance companies including USAA and Progressive.
2. Life insurance protects your children
Beneficiaries of life insurance receive a death benefit upon the death of the policyholder. Without life insurance, your children will not have the financial resources to cover the costs of their care. The life insurance money can be used to pay off your mortgage, allowing your children to stay in the family home. Whether you have young children or teenagers, the death benefit can cover the cost of food, shelter, and college. Funds from your life insurance policy can also be used to support your children’s guardians so that they have the household income they need to cover the costs of looking after themselves and your children.
3. Life insurance protects your loved ones
When a person dies, his creditors can demand payment from his relatives. Your parents, siblings, or other family members may receive calls from debt collectors. Plus, your family can use life insurance benefits to cover your funeral expenses. With the right coverage, you won’t have to worry about letting your family struggle with debt and funeral expenses. Investing in life insurance is one way to protect your family’s financial interests.
4. Tragedies happen
One of the main reasons for getting insurance is that tragedies happen. More than 1.3 million people die in car crashes around the world each year. Medical conditions, such as heart attacks, strokes, and viruses, also kill millions of people in the United States each year. People also die in recreational accidents and work accidents. No matter how safe you are, you cannot guarantee that a tragedy will not take your life.
5. You can use your life insurance in a financial emergency
When you buy an insurance policy, you need to determine the amount of life insurance you need. You should also consider different options. Some life insurance policies also act as a savings plan, allowing you to borrow funds from your insurance policy. It’s a good idea to discuss all of the options with an insurance company to make sure you choose the best policy, especially the one that covers the coronavirus.
You can also sell your life insurance policy. Viatic institutions are options for people with chronic or terminal illnesses. A viatic settlement company will find a buyer for your policy and you will receive a lump sum in cash. The buyer becomes the beneficiary of the contract and receives the death benefit upon your death. Lifetime settlements are similar to viatics.
However, you will receive less money because you do not have a terminal or chronic illness. Viaticum and life settlement funds can be used for any purpose you choose, including paying medical bills, creating trust funds for your children, or traveling around the world.
Life insurance provides financial protection for your family. Purchasing a life insurance policy protects your family from drama and guarantees your children the financial resources they need.