Why Life Insurance is Must for a Single Mom?

Life insurance is one thing that can never be neglected and it can safeguard your family during your absence. There is no way you can predict emergency situations in life and being a single mother means that you have added responsibility on your shoulders. Imagine a situation when you are no more there to shoulder the responsibility of your children and other family members. The thought itself can be scary and especially your kids will be the worst affected in that situation. However, you can safeguard their future when you have a proper life insurance plan for you. The best thing you can do in this situation is to choose the term insurance plan so that your dependents can lead a secured life even during your absence.

What is term insurance and how it benefits?

A term insurance plan works in a simple way. The person taking insurance will have to pay premium for the decided duration and only death benefits will be given to the nominee if the policy holder does not survive the tenure. You can choose to pay the premium for a long duration or you can even choose a one-time payment for the life insurance plan. It is the cheapest option available and you can easily get the maximum coverage by paying very less money. It pays to start early when you are choosing life insurance as you will be getting the policy at very less premium. You will have to pay more premium for the same policy as you age and this can cost you more money at a later stage.

Life insurance covers your medical expenses during accident situation

You can include the accident cover along with the insurance plan and this will provide you compensation when you are involved in an accident. If the accident causes permanent disability, you will be getting a major share of the sum assured at that time and this will help you to safeguard the life of your family members.

Life insurance is affordable when you choose the right deals

You will be surprised to know that it costs very less money to get life insurance. If the basic aim is to just secure your life with a good insurance policy, always go for term insurance plans. Remember that you will not get any survival benefits in most cases with the regular term insurance plan. However, it costs very less to get such plans.

Compare different plans available in the market

As the insurance market is flooded with many options, you should always make it a point to compare different plans before you choose the suitable option for your life cover. In this regard, you need to have some basic knowledge about various features of the life insurance plans.

The best thing to do in this situation is to visit the online portals that provide comprehensive information about various insurance plans. This will be your best platform to learn everything about life insurance policies and you can even buy them online without any hassles.

The good thing about such platforms is that they allow you to compare different plans from multiple service providers. In this way, you will know the benefits of choosing each policy and you can select the best option suited for your situation.

All you need to do is to mention your basic details and the coverage you expect to get from the insurance company. The portal will provide free quotes from multiple service providers and this will help you to understand the cost and features of different plans.

You can even buy these plans online in most cases and this will save you lots of time. On the other hand, if you are still new to investment, you can call the office of the service providers and ask their executives to visit your place for a detailed explanation of the plans. In this manner, you can clarify any doubts you have about the insurance plans.

Combine life insurance with investment for your future

When you think about life insurance plans, it need not just provider life cover and it can even help you to grow your money. There are many plans that even provide survival benefits along with death benefits. In this way, you will get money at the end of the maturity period if you survive the tenure of the policy. On the other hand, when the insured person does not survive the tenure, the benefits will be passed on to the nominee.

Apart from this option, you can even invest some money in the financial market and also get suitable life cover along with this plan. This is called Unit Linked Insurance plan and you will be able to grow your money through equity investment.

Even though it has some amount of market exposure, it is worth investing in such plans as you will get to grow your money for your future needs. The simple thing you can do in this situation is to split your money between different forms of life cover plans. Make sure that you do not depend entirely on insurance cover offered by ULIP plans as it may be very less. You should always have a separate and pure life cover and this is possible when you choose the term insurance plan.

Choose the best child plans

Many people get confused with the name and think that child insurance plans cover the life of children. However, this is not true and it covers the life of the parent or the guardian of the child. It is the best choice for single mom as she can secure the future of the child in this manner.

Let us understand how it works in a simple manner. When the parent buys child insurance plan, the option is given to choose the tenure as per the age of the child. In this way, you can plan when you want to get back your investment and this can be used for higher education of your children.

In the same manner, you can also select the duration for which you want to pay premium and this should be done depending on your earnings. If you are still young, you can continue to invest for a long duration and when you do not have regular income, you can even choose one time investment in such plans.

In this way, you can rest assured that the education and other financial needs of the child will be secured even during your absence.

After taking the insurance policy, you need to pay the premium regularly and you will get the sum assured after the maturity of the plan. In most cases, you can choose to invest only for few years and get the benefits at a later stage.

If the parent dies during the tenure of the policy, there is no need to pay further premiums and the policy will still continue to exist as the insurance company will pay the remaining premiums. In this way, the child will get benefits at the designated period irrespective of other factors.

This is the best way to secure the future of your child and you will be able to fulfill the dreams of your children even during your absence. Your responsibility as a parent will be completed through the benefits offered by the policy.

How often have you seen that children have to drop out of school or discontinue their higher education due to the death of parent? This will not happen to your child if an unfortunate event strikes your family in future.

Tips to choose the right insurance plan for single moms

You can follow the simple guidelines given below to choose the best insurance plan. Remember that being a single mom adds a lot of responsibility with regards to securing your family and you should always take your life insurance seriously and get the best cover.

Consult a professional insurance advisor

Never hesitate to consult a professional insurance advisor when it comes to choosing the best plans for your life insurance.

You will be glad to know that you can get advisory services for free in most cases as the companies face severe competition in the market and they will be more than willing to explain all the features of their insurance plans.

The first thing you need to do when you meet them is to mention all your requirements in a detailed manner. This will help them to filter the plans and they will suggest the ones that will suit your requirement.

However, you need to get in touch with insurance agents from different companies to understand their plans in a detailed manner.

This can be a time consuming process in the initial stages but it is worth putting effort in this direction. It may take few hours to understand different plans of each company.

Do not decide on any plan immediately after listening to its features from the insurance agents. Remember that they are trained to sell their products by highlighting the exciting features.
You can take some time to decide and inform them that you will think about the plan and get back to them later.

After consulting few insurance agents in this manner, you will have a clear idea about the best plan that will meet your expectations and you can buy them from the market.

Choose the suitable coverage that will safeguard your family in future

Make sure that your life cover will be enough to safeguard the interest of your family if you are not able to survive till you fulfill their dreams.

Most people get confused in this regard and do not know for what amount they should choose the life insurance cover.

In standard terms, you should calculate your annual earnings at present and multiply that amount by ten to arrive at a decent figure. You can get insured for this much amount and this should be enough in most cases to secure the future of your family.

However, down the line, you may feel that your earnings have increased and you may need more cover to secure your family members. In that situation, you can add more cover at a later stage or invest in another life insurance policy at that time.

You should also factor inflation and other issues when deciding this amount as what you feel is a good amount now may end up becoming very less in future.

Split your investment among different insurance plans

It makes sense to invest in different varieties of life insurance plans. Remember that each one has its own advantages and you should split your money among them to get the best results in future.
The primary importance should be given to term insurance plans as this is the basic and purest form of insurance plan. It also costs very less to get high amount of life cover.

Once you have secured your life with such term insurance plan, you can think about investing in other insurance plans that come with market linked features. This can help you to grow your money in future.

Choose insurance plans with health cover

You will be glad to know that you can even get health cover included in the insurance plan. In this manner, when you are seriously injured in an accident or face any life threatening diseases, you can get compensation and this will be useful for the medical expenses. In this way, you need not burn your savings to pay for the hospital bills.

Being a single mom should not hold you back from taking insurance cover and you should always get the maximum coverage for yourself as you will have bigger responsibility towards your children. When you choose to add child cover plans, it can secure your life and also provide security for the future of your children. In this manner, you need not worry about the high expenses of your kids’ education at a later stage in life. Whatever you save now will come to your rescue in future and help you to handle the situation in a comfortable manner.