Life insurance is especially important for single parents, both for themselves and for their children. It may seem as though the monthly budget has room left to squeeze in another bill, but life insurance is vital to the future of your family, and not having it could be much more atastrophic than finding a way to budget a few more dollars a month. Examine the types and uses of insurance policies, and how you could apply them to your own family’s goals.
Insuring yourself is vital in providing for your child’s future. If something happened to you tomorrow, it would be your life insurance policy that would pay for the care your child needed until she was grown. Picking up a whole or permanent life insurance policy will ensure a financial legacy, but it can also help you and your kids while you are still living. Once you have built up some cash value in the policy and your child has put on a few years, you can borrow against the cash value to add on a new bedroom for your young one.
Similarly, and insurance policy for your children will make sure that there will not be a financial hardship if the child dies. You would already be drowning in emotional turmoil, so use insurance to prevent it from coming at you from the financial angle as well. And if everything goes as well as you’d like, that policy could turn into a nest egg for your son one day. Setting up a policy for one so young would give the policy plenty of time to build up a value sufficient for a down payment on a home.
In addition to whole life insurance, you may also want to consider taking out term policies from time to time. Term life insurance is a great way to make sure the mortgage will be paid off, provide money for your family to return to the ancestral home, or to make sure the money for college tuition is there when your kids are nearly grown, even if you cannot be there yourself.