Do You Have a Health Insurance?
According to a research paper from University of Virginia’s Darden School of Business and Genworth financial, almost 70% of single parents with children do not have a proper health and life insurance.
Single moms or single parents and their children are the ones, which require life insurance the most. It is an important task for the insurance agents to formulate a good plan for the single moms.
Often people who are not buying life insurance are the ones who feel it is too expensive or life insurance is a complex tasks.
According to a survey 79% of single fathers who do not own a house and have, children at home do not have life insurance. This percentage is further low in case of single moms. Families with more children and less income do not have a proper life insurance.
Often it is observed that in case of single parents’ child support comes from some other source. This is more prevalent in case of single moms. Often single moms rely on Social security survivor benefits for their kids.
However these are not the proper solutions for life cover. If you do not plan any thing for your child, after you die there will be a big financial hole. You will have to make sure that if your are not alive your kids have enough money for sleep and food. These social security benefits are just 75% of parent’s benefit.
If your children are dependent on a non custodial parent then you must make sure that that person has enough insurance policies. Always figure out the details of the policies and the most important of all are you children in the beneficiaries list.
If you cannot estimate about the amount, you need to insure, the thumb rule is 6 to 10 times of your salary. However, there are some different types of covers, which you can add like your funeral expenses, child’s college cover and for your mortgage too. All these factors can easily be rolled into one policy.
Term policies are the cheapest and best insurance cover. Here you buy an annual policy for a guaranteed premium for a specified term or year. There is no cash build up facility however, the cost of these term policies are low.
If you are waiting for prices to fall down, do not wait. Often prices do not come down, because of the volatile market prices are ever increasing.
If you are heavy, smokers quit smoking. This habit of yours can make you spend more money on your insurance. If you are healthy, your term insurance will automatically come down.
Be well informed about the term insurances and other insurances available for you. Keep your documents ready so that instantly you can pick insurance for yourself and your kids.
Being a single mom is a big responsibility however, you must be very sure of insurance cover if you have a child at home. Be informative and rotate this information all around yourself.