New Delhi: Term life insurance is necessary for every individual with dependents. Naturally, it is indispensable for single parents who are either widowed, unmarried, separated, or divorced when it comes to securing their children’s financial futures.
Single parents may otherwise encounter various challenges down the road, which are both financial and emotional. They have to cover the current needs of their children while also meeting their future financial goals. Term life insurance can be useful in addressing these aspects.
Why Term Life Insurance Matters for Single Parents
Here are some reasons why term life insurance is vital for single parents.
⮚Create a financial safety net for children- Term insurance offers pure life coverage to policyholders and an assured payout to their nominees upon their demise within the policy tenure. Hence, single parents can breathe easily, knowing that their children will be taken care of in their absence. Also, parents can choose from lump sum or monthly payouts of the death benefits or a mixture of both. Naturally, their children will not have to depend on anybody else, thereby eliminating any chances of exploitation or misuse of the funds.
⮚Helps children meet future goals- Should anything happen to them within the policy period, then single parents can be assured that their children will still be able to meet their future goals. These may include higher education, setting up a business, weddings, travel, buying a house, and so on. Term life insurance will enable single parents to combat inflation by accounting for the same while calculating life coverage. At the same time, some term plans may come with features like return of premium. This ensures the return of all premiums paid upon policy maturity, which may be used by the child for specific purposes.
⮚Affordable options for single parents- Term insurance policies are relatively more affordable for single parents. This is because it is among the most affordable life insurance policies, with the lowest premiums of the lot. At the same time, it still ensures suitably high coverage for policyholders. Hence, this is a boon for single parents who have to bear higher financial responsibilities, including household costs and the expenses related to their children’s education, healthcare, and more. There are several premium payment choices semi-annually, quarterly, monthly, and annually, enabling higher flexibility for single parents as well.
⮚Gain added protection with strategic riders- Another advantage of term life insurance is that you can enhance these policies with riders. These enable extra protection, with options like critical illness, terminal illness, accidental death, disability, premium waivers, and more. They require only nominal additions to premiums and widen the scope of coverage immensely. For example, critical/terminal illness riders enable a lump sum payout on the diagnosis of any such illness. The permanent disability rider waives off future premiums upon the diagnosis of any such disability. Hence, these offer added financial security for both single parents and their children.
Signing Off
Hence, single parents will always benefit from adding term life insurance to their financial portfolios. The best part is that these policies also offer attractive tax deductions, which makes them a win-win option for almost anyone.
