The single parent's guide to Life Insurance
You might assume life insurance would be of equal consideration for all parents but the 2017 Insurance Barometer Study by Life Happens revealed that isn’t always the case. While 82% of married people surveyed said married people with a young child or children need life insurance, only 60% of single parents thought they needed coverage. An article detailing the results of this study appeared in NerdWallet, and has since been covered in 100 publications across the country in 25 states.
When it comes time to buy life insurance follow these suggestions from Brian Madgett, vice president (now retired) at New York Life Insurance Company:
First tally up how much it would cost to pay off the mortgage and other debts. Then think about ongoing household expenses and the number of years of income you'd like to replace. Add long-term expenses, such as college tuition or the cost of a child's future wedding.
“When buying term life insurance, choose a term that lasts until the youngest child has graduated from college.”-Brian Madgett
Perhaps most importantly, take care in naming the beneficiary. Life insurance companies cannot pay money directly to minors so be sure to name an adult custodian to handle the money on their behalf. You can also work with an attorney to set up a trust for the benefit of the children and name the trust as the beneficiary.
Read the full article here.
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