Lapeira & Associates LLC Blog
Being a single parent makes it essential for you to have life insurance. Unexpected and sudden death can happen to any person. If you’re a single parent, having life insurance guarantees support for your children if you die unexpectedly.
Factors that Determine the Amount of Life Insurance Single Parents Need
As a single parent, one of the most important things you can do is to make sure your family is taken care of financially in the event of your death. Life insurance is an essential component, but determining how much coverage you have can be tricky. There are several factors to consider:
Get a minimum of life insurance that amounts to 10 to 15 times your yearly income and monetary death benefit. This monetary benefit can support your kids’ daily expenses like utility and similar bills and groceries.
The Amounts of Debts You May Have
Co-signers are responsible for paying off your remaining debts if you pass away unexpectedly. Of course, it’s common sense that your children aren’t going to be responsible for paying these bills off. If your loans had no co-signers before your death, creditors could take away your properties. So, your life insurance also needs to have a sufficient amount to pay off all of your debts.
Your Children’s Future Expenses
There’s no timeline for sudden deaths, as it happens unexpectedly at times. So, your kids’ future expenses need to be considered. Examples of future expenses your kids may have are college fees, extracurricular activities, and savings funds. Include these expenses into your computation of the amount of life insurance you’ll get.
Combine these three factors when you compute the final total amount of life insurance you’ll be having. Don’t forget to include your death expenses in computing for the said amount.
Deciding on the Name of the Beneficiaries for Your Life Insurance
It’s human nature to want your children to be the beneficiaries of the life insurance you’ll get as a parent. But keep in mind, though, that minors aren’t legally allowed to accept life insurance funds until they become adults. Without having beneficiaries, there can be a delay in processing the lawful proceedings in determining the legally-entitled individuals to get life insurance money.
Name the life insurance under a trust, indicate how the money is given and spent, the expenses the funds can be spent on, and a trustee who will enforce your wishes. Doing so can prevent legal complications and disbursement of monetary benefits of your life insurance.
Planning life after death may not be something you want to do. But doing so, though, can spare your kids from a possible tough future ahead of them.
At Lapeira & Associates LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (855) 963-6900. You can also request a free quote by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.