No ones likes to talk about it.
But what if your time comes sooner rather than later? Have you taken the time to plan for if something happens to you?
This article was sponsored by SelectQuote, but all thoughts and opinions are my own.
Why single parents need life insurance
Single parents are in the greatest need of life insurance. There’s no other person there to assume the financial responsibilities the single parent leaves behind.
A 2011 study found that 69% of single parents with children living in the household were uninsured, compared to a 45% uninsured rate for married parents with children living in the household.
As a single mom of three kids, the thought of an untimely death weighs heavily on my mind. I don’t have a spouse to pick up any slack.
I think about the everyday cost of raising three kids. Raising children is not cheap, and I’d hate for my family to be financially stressed by raising my kids if something happened to me.
Did you know that the average funeral costs over $7,000? That’s quite a burden to leave your family!
Most people think about the the costs of a casket, a headstone, and a gravesite, but there are also fees charged by the funeral home for the service and preparing the body.
Most experts recommend budgeting $10,000 to cover your final expenses. Choosing cremation can save money, but the average cost is still around $3,000.
Having a life insurance policy that can cover these final expenses will ensure your family is not burdened with the cost of your death.
Debt and financial obligations
Do you have any debt?
Think about what you owe on any credit cards and student loans. What about a car loan or mortgage?
When you are single, there’s no other person there to assume these debts. If you have a co-signer on any of these loans, would they be put in a difficult place financially by taking over your debts?
You might think that assets such as your house or car will be easy for your family to take care of.
But even selling your assets is not without expenses.
If my family decided it was best to sell my home, it may take months to sell. Who’s going to pay the several months of mortgage payments, utility bills, and property taxes while it is on the market?
Do you have enough equity in your home to cover the costs of selling? A realtor will typically take 6% of the sale price. Then you have to consider any transfer taxes, possible repairs, and closing costs/concessions.
And what about your car, do you have equity? With more people choosing longer terms for their auto loans, there is a greater possibility of being upside down on your loan. Who will make up the shortfall and pay off the bank when they sell your car?
There can be significant costs associated with selling your assets and life insurance is a great way to help financially protect against those costs.
The costs of raising your children
As a single parent, have you given thought to who would raise your kids if you passed away?
You’ll want to think about their financial stability. Will the caregiver you choose be able to financially support your children in addition to any of their own? If your children are young, what about the added cost of childcare?
Although my sister has a child of her own, adding my three kids would be a financial stressor. Not only are there everyday costs such as food and clothing, but she’d also likely need a bigger home as well.
In additional to general costs of raising your children, you might want to also think about college costs.
Even if you are regularly contributing to college funds for your children, what happens if you pass away? They might be years away from a fully funded college account.
Life insurance proceeds are a great way to ensure your family can financially support your children if something happens to you.
Term life insurance: An affordable option
What is term life insurance?
Term life insurance pays a benefit if you pass away during the term covered. Term policies can usually be found for 10, 15, 20, or 30 years.
Term policies are a great life insurance option for when you have children. You can choose a term that corresponds with how long you will want to have the protection of life insurance, typically until your children are grown. Your life insurance needs will be different once your children become adults.
Shopping for life insurance
Ready to protect your loved ones? Take the time to look into your life insurance options.
SelectQuote shops for the best prices from the 12 trusted companies they represent. SelectQuote has been in business for over 30 years and is America’s #1 term life insurance agency.
To get started with a quote, you can go online and answer a few simple questions (age, height/weight, and some basic medical information). You’ll get a confirmation email and an agent will call you back to discuss the best option for your needs.
If you want to talk to someone right away, you can also call 1-800-670-3213 for your free quote.
FREE 2017 BUDGET BINDER
Get your finances organized with budget worksheets, a bill payment checklist, savings trackers, debt tracking sheets, and more! FREE DOWNLOAD includes 20+ pages of financial printables for 2017.