Single parents: Your children's security is more affordable than you think.
Ensure your children realize their hopes and dreams—for less than the cost of a night out.
It’s a fine balance between burden and blessing, and sometimes, as a single parent, it feels as if you are carrying the world on your shoulders: Nearly all single parents agree that raising their children alone is both a joy and a challenge. One thing remains true for many single parents, however: Your children depend on you and only you. So what would happen to them if you weren’t around for them tomorrow?
Unfortunately single parents are significantly less likely to have life insurance than their married counterparts, even though they have a clear need for coverage.
Why? Some single parents may feel that insurance protection is unaffordable; others may feel they don't have a spare moment to figure out their insurance needs. Many just don't know where to start. And they’re not alone. “It seems to me,” mused agent Gary Chipurnoi, LUTCF, Greater New York Office, “that for many of my clients, no one actually took the time to sit them down and explain the dangers of being uninsured and the potentially negative impact it can have on their children’s lives.”
Another contributing factor is that many single parents are unaware of the importance of, or have difficulty finding, the resources to create wills, trusts, and other necessary documents that can help define the future for surviving children. “Growing up, I certainly don’t remember anyone explaining the importance of them to me,” says Chipurnoi. Today, as part of his services, he puts his clients and prospects in touch with trusted professionals who can provide those services.
Protection can be more affordable than most parents think, however. Term insurance is the simplest form of life insurance. Term insurance provides affordable protection for a specific period of time at a scheduled premium level. You choose a coverage level, a term (usually 10-20 years) and name a beneficiary—that is, the person you want to receive the benefit if you die. If you die while your term life insurance policy is in force, the death benefit is paid to the beneficiary you chose.
Many term policies offer a conversion privilege that can be used to purchase a permanent life insurance policy that builds cash value and may earn dividends (which are not guaranteed). For example: A single mother can purchase from New York Life Insurance Company a $250,000 10 Year Level Term policy1 for herself and $25,000 term riders for up to three male children—all for less than $19 a month. (That’s close to the cost of two movie tickets!) If you die while your term life insurance policy is in force, the death benefit is paid to the beneficiary you chose.
And, for a little under an additional $10 more a month, that same parent could double her protection to $500,000 in term coverage2 with $25,000 term riders for her children—about the cost of dinner at the local pizzeria.
Still think security is unaffordable? Think of all the things that your legacy would enable your children to do, should they be in someone else’s care: pay for tuition at a private school, pay for a college education, put a down payment on a house, obtain medical care, take music and art lessons, pay for a wedding…the list goes on and on.
Losing an uninsured parent can have a devastating effect on children’s’ lives, particularly on the children of single parents. It’s imperative that parents take the proper steps to ensure that their children are protected—and will be able to realize their dreams and goals.
We’re here to help. Your local New York Life agent can sit down with you and help you determine which policy is right for your budget and your family’s needs. In addition, he or she can refer you to other trusted professionals in your community who will help ensure you have the proper paperwork in place. This includes wills, trusts, and other legal documents that will ensure as smooth a transition as possible for your beneficiaries.
For a no-cost, no-obligation consultation at a time that works with your busy schedule, fill out the “Talk it through with an expert” form here.
In Oregon, the Level Premium Convertible Term policy form number is 210-60.27. The Level Premium Convertible Term 5 Rider form number is 210-450.