When it comes to children, most parents want the same thing: to make sure that they’re happy, healthy and secure. As a single parent, this responsibility falls to you, which at times feels like a lot of pressure. When it comes to your children’s future, it’s important to get it right. So how do you know what kind of life insurance , wills and estate planning are right for you as a single parent? Read on to find out…
How Can Life Insurance Protect Your Family?
As a single parent, your children may rely on you as the sole caretaker and breadwinner. What would happen to your children if you were to suddenly pass away? Do you have designated guardians to take them on if needs be? Is there money set aside to help them live the life you want them to?
If your income was no longer there, your family could struggle to meet larger expenses, such as a mortgage, or even the household bills and other day-to-day expenses. With adequate protection in place, you could have peace of mind that you would leave your children without any debt to inherit. You could also help to make sure they can still enjoy major milestones, like learning to drive or going to University with enough finances not to struggle.
Here at my Family Matters, we have a wide range of specialist Protection Plans to protect your children and loved ones should you pass away. They include:
- Life Assurance, which pays a life assurance sum out on your death.
- Serious and critical illness policy, which pays you out if you contract cancer or another serious illness.
- Funeral Plans which cover the cost of your funeral.
- Care Fee plans that mitigate the cost of care both in your existing or residential home.
- Inheritance Tax Mitigation Trust which can be used to protect your home or pension.
- Income Protection Plan, which covers your wages if you are off sick for 3 months, and replaces your salary before you retire.
- Family Income Benefit, this plan pays a monthly income to a partner or spouse if someone dies.
- Business Protection Insurance, this ensures that your business is protected should the owner or partner of the business die.
For any info Wills and estate planning, visit our blog which has a wealth of information on how to protect your loved ones.
Do Single Parents Need Life Insurance?
Life insurance helps you to ensure that there’s a financial cushion in place for your children should you pass away. Even the young and healthy can take out life insurance because as we all know, life is unpredictable. Disaster can strike at any time. With the financial responsibility of being a single parent and possibly the sole provider for your family, life insurance could be a simple way of protecting your loved ones if the worst were to happen.
There are a few different types of life insurance. Policies can be tailored to different needs. Let’s have a look at how Family Matters can offer.
Types Of Life Insurance For Single Parents
There are several types of life insurance products ideal for single parents. The one that’s best for you will depend on your family’s financial needs. When you start looking at products, you will usually want to consider the following:
Decreasing Term Life Insurance:
With a decreasing term policy, the pay-out decreases over a designated term.
Decreasing term life insurance is often tied up with mortgages and the pay-out would cover the outstanding balance. Many mortgage lenders require borrowers to take out decreasing term life insurance policies as a condition of the loan.These policies are helpful if mortgage payments account for a large part of your family’s monthly expenses.
You can also align decreasing term life insurance policies with your children’s age, assuming the total amount of financial support they’ll need will decrease as they get older. These policies often come with more affordable premiums than level term or whole of life policies.
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Level Term Life Insurance:
Level term policies pay out a fixed amount whenever you die, provided it’s during the policy term. They’re useful for covering educational expenses which may increase as your children get older, and for leaving them an inheritance.
Level term insurance is more costly than decreasing term insurance, but cheaper than whole of life policies. You can reduce costs by setting the term so it lapses when your youngest child becomes an adult.
Whole Of Life Insurance:
Some parents want to guarantee their children receive a pay-out no matter when they die, not just during the 10 to 30 years a term life insurance policy runs for.
These parents will want to consider whole of life insurance. These products will be particularly appropriate for parents who expect to care and financially provide for children with special needs for the rest of their lives.
Whole of life insurance policies are the most expensive type of cover, but will be the most sensible for some single parents.
For any info Wills and estate planning, visit our blog which has a wealth of information on how to protect your loved ones.
Where Do I Start
When it comes to securing life insurance as a single parent, you should think carefully about what you want your protection to do, how long you want it to last and how much you can afford to pay.
You should also consider if there is any additional cover you want to put in place. You might want to open a trust or consider other estate planning solutions. Whatever your needs, we’re here to help
Securing the right life insurance as a single parent can seem overwhelming at first but we’re here to help. Whatever your needs may be, our team of experts are on hand to help you find the right policy for your circumstances at an affordable price.
How We Can Help You
Here at Family Matters, we have a wide range of specialist protection plans and services, that we can guide you through and find the right policy for your circumstances however simple or complex it may appear.
Wills And Estate Planning
For any info Wills and estate planning, visit our blog which has a wealth of information on how to protect your loved ones.
We will consult with you about what you want or need and then using our large network we will compare plans and protection services from both the high street and products only available to our team of professionals here at Family Matters, we will find the most appropriate policy plan for your circumstances.
Contact Us
If you’re ready to secure life insurance, you can apply for a quote online today. If you’d prefer to talk to one of our friendly team, you can call us and we’ll be happy to talk you through your options.