Single moms are mothers who don’t live with a partner and raise their children alone. Single moms may have one or more children. Some women opt to become single moms, while others become single moms due to unforeseen circumstances, such as the death of their spouse or divorce.
Single moms face unique challenges and have distinct needs. Some single parents may struggle financially, while others lack family support. Single parents may be tempted to reduce expenses, but they should invest in life insurance. Let’s explore some of the reasons why single mothers should have a life insurance policy.
1. It can be very affordable
Shopping for car insurance for single moms can be challenging, but you can locate affordable auto insurance thanks to insurance comparison resources. Single parents often pay notably higher rates for car insurance. Access an insurance comparison tool and enter your zip code. The tool prompts you to answer questions about your vehicle, your gender, and how many vehicles you want to insure. The tool uses your information to compile a list of insurance companies that can provide the comprehensive coverage you need at a price you can afford.
Saving money on your monthly premiums for auto insurance ensures you have the money you need to take out a life insurance policy. You may even qualify 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 coverage protects your children
Life insurance beneficiaries receive a death benefit when the policyholder dies. Without life insurance, your children won’t have the financial resources to cover the costs of their care. Life insurance money can be used to pay off your mortgage, enabling your children to stay in the family home. Whether you have young children or teenagers, the death benefit can cover food, shelter, and college costs. Funds from your life insurance policy can also be used to provide for your children’s guardians so that they have the household income required to cover the costs of care for themselves and your children.
3. Life insurance protects your relatives
When a person passes away, their creditors may pursue payment from their relatives. Your parents, siblings, or other relatives may receive calls from debt collectors. Additionally, your family can use life insurance benefits to cover your funeral expenses. With the right coverage, you won’t have to worry about leaving your family struggling to pay off debts and funeral bills. Investing in life insurance is a way of protecting your family’s financial interests.
4. Tragedies occur
A primary reason to get insurance is that tragedies occur. Over 1.3 million people die in car accidents around the globe each year. Medical conditions, such as heart attacks, strokes, and viruses, also claim millions of lives in the United States each year. People also die in recreational accidents and workplace accidents. No matter how safe you are, you can’t guarantee that a tragedy won’t claim your life.
5. You can use your life insurance for financial emergencies
When you’re taking out an insurance policy, you’ll need to determine how much life insurance you need. You should also evaluate different options. Some life insurance policies double as a savings plan, enabling you to borrow funds from your insurance policy. It’s a good idea to discuss all options with an insurance company to ensure you select the best policy especially one that covers the coronavirus.
You can also sell your life insurance policy. Viatical settlements are options for people with chronic or terminal illnesses. A viatical settlement company will find a buyer for your policy, and you’ll receive a lump sum of cash. The buyer becomes the policy’s beneficiary and receives the death benefit when you die. Life settlements are similar to viaticals.
You’ll receive less money, however, because you don’t have a terminal or chronic illness. Viatical and life settlement funds can be used for any purpose you choose, including paying medical bills, creating trust funds for your children, or traveling the world..
Life insurance provides a financial safeguard for your family. Taking out a life insurance policy protects your family from tragedy and ensures your children have the financial resources they need.