Many parents may consider life insurance an important part of their long-term financial plans. Single parents may place greater emphasis on the value of insurance coverage since they require the assurance that their child or children will be supported if anything happens to them.

Insurance products can be tailored to your budget, current financial position, and circumstances, with a child named as your beneficiary. You can also appoint a trust as your life insurance recipient if your children are young, where funds can be held for your children's use according to your wishes.

Today, we'll discuss single parent life insurance and how to use it, along with some guidance about the types of life coverage that may meet your requirements.

As we've mentioned, there are many different types of life insurance. Whether you are interested in life insurance for business partners , term insurance for a limited period, or a permanent insurance product, it is important you make an informed decision.

A starting point may be to consider the death benefit you consider sufficient to cover your children’s living costs–from now until they reach twenty-one or over a set period such as ten or twenty years. You may also wish to purchase permanent life insurance or opt for a family income rider to supplement your existing coverage.

This rider means that your death benefit would be paid to your children or via an appointed guardian in monthly installments, designed to help replace the income you would have generated. Once you have a good idea of the death benefit value you feel comfortable with, you can compare different life insurance products and the associated premiums.

Choosing a life insurance product may seem complex, with multiple policy options, insurance structures, inclusions, premiums, interest rates, renewal terms, and product features.

Ultimately, the most appropriate life coverage for you may depend on:

●       The death benefit you would like your child or children to receive
●       The length of time you want your coverage to remain valid
●       The budget you have to cover monthly insurance premiums

Single parents may also need to consider other debts, savings, or assets they own. For example, if you have a mortgage and want your child to inherit the home debt-free, you may need to calculate the total repayment value.

Term Life Insurance

Term life coverage remains inforce for a defined period, usually between ten and thirty years. This life insurance product may provide lower premiums than permanent coverage and can help offer the reassurance of financial protection should you die before your children achieve financial independence.

Whole Life Insurance

Whole life coverage is a type of permanent policy. While the premiums will typically be higher than for a term product, the benefit may be that your life insurance policy will remain inforce for the entirety of your life, provided you keep up with your premium payments.

Decreasing Term Life Insurance

Decreasing term life insurance is often used as a form of protection against debts, such as a mortgage. Over time, the death benefit drops, in line with the reduced debt profile. It is intended to help cover all outstanding debts if you were to pass away during the term.

Of course, these products are only a small sample of the range of life insurance policies available, but they provide an idea about the types of life insurance coverage you might find suitable as a single parent.