• Review
  • Freebies
  • eBook
  • Planner Download
  • Blogging Resources
  • Contact
    • About Me
    • Privacy Policy
    • Affiliate Links
  • Coupons
    • Facebook
    • Instagram
    • Pinterest
    • Twitter

Confessions of a Single Mum

The ups, the downs and sideways views of life as a single parent

  • Home
  • Recipes
  • Crafts
  • Money
  • Parenting
  • Dating
  • Blogging
  • Planners

Life Insurance struggles of a Single Parent

Post Last Modified July 23, 2018 By Confessions of a single mum Leave a Comment

The rise of the single parent

The number of single parents has tripled over the past 40 years resulting in one quarter of families in the UK being lone parent families.

As a single parent life can be hard; you are solely responsible for your childís developmental and emotional growth as well as their financial stability. Money can be tight at the best of times and with the cost of living rising significantly, it can make it even more difficult to live on only one income.


But what if that income were to be taken away?

Future financial stability for your children

In the event of your death, your child would not only be left without the emotional support of a parent, but also without the financial backing you have previously provided. It doesnít bear thinking about how detrimental this can be to the future of your child.

For example, property is one of the most valuable things you will leave your children upon your death. However, if you were to die without sufficient cover in place, the mortgage repayments will not be made and therefore the mortgage would default.† This would result in the property being ceased by the authorities, not only leaving your child without a home but also without the future inheritance of your property.

The best way to ensure the future financial stability of your child, should the worst happen to you, is to secure adequate life insurance.

Life insurance for single parents

Generally speaking, taking out life insurance for single parents is no different to what it would be if you were taking out a single policy under any other circumstance (married, not a parent etc.). You simply determine the cover you require, provide all the relevant information for the application, continue to make premium payments for the term of your policy and if you die during this period, the allocated payout will be made.

Types of life insurance

There are three common types of life insurance single parents are likely to consider; level term life insurance, decreasing term life insurance and family income benefit.

Both level term and decreasing term life insurance provide a lump sum pay out upon your death, but whilst the payout sum of level term life insurance holds its value during the term of the policy, the payout sum of decreasing life insurance reduces over time. For this reason, decreasing life insurance is ideal for covering the remaining balance of a mortgage or other large debt, whereas level term life insurance is good for covering funeral and legal costs or providing an inheritance to your children.

Family income benefit differs in that, rather than providing one lump sum payout upon death; tax free monthly payouts are made for the remaining term of the policy following your death. Therefore, the earlier into the policy you die, the more monthly payments your beneficiaries will receive. This policy type is ideal for single parents looking to provide ongoing support to cover the costs of daily living.

Affording monthly premiums

Only 42% of single parents have life insurance. This is predominately due to the monthly cost associated with having such cover in place, but contrary to popular belief, life insurance doesnít have to be expensive. There are a huge range of insurers available making it essential to ensure you achieve the most cost-effective solution to suit your needs.

As a single parent, time can also be a stretch, so using an independent insurance broker will allow them to shop around on your behalf and find the most suitable quote to fit within your monthly budget.

Writing your policy in trust

If you are a single parent and are looking to obtain life insurance, it is likely your children are of a dependant age. Therefore, it is unlikely if you were to die during the term of your policy that they would be in a position to manage the payout which is made.

To avoid complications caused by this, you can have your life insurance policy written in trust. This involves specifying a number of trustees who will oversee the payout, ensuring it is allocated where you desired and if required any money/property is kept secure until your children are of an age they are able to receive and manage it themselves.

Writing your policy in trust not only means you will have more control over where the payout is allocated, but it also avoids the monetary sum becoming part of your estate, therefore minimising the amount of inheritance tax your children would pay. It would also increases the speed at which the payout is made as lengthy probate processes can be avoid.

Prepare for the future now

The important thing to remember is that as a single parent, if the worst were to happen to you, your child would not only be left with an emotional, but also a financial void. Having adequate life insurance in place can take away this risk and ensure the future financial stability of your loved ones. The monthly cost may deter you at first, but affordable premiums do exist and the potential consequences for your children are far worse.

Related posts:

No related posts.

FREE Christmas planner 1

Free ChristmasPlanner

Those two favorite words again. Christmas and Free. This time it’s a Christmas Planner to make the run-up for Christmas so much easier. 

14 pages include Christmas recipe page | Christmas Tree checklist | Christmas Gift List for Family | Christmas Gift List for Friends | Christmas Gift List for Neighbours | Christmas Gift List Other | Christmas Budget

You have Successfully Subscribed!

Filed Under: Home Things, Money

« How to give your child the best bedroom ever – even on a budget
Create The Best Outdoor Playground For Your Kids »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Food Advertisements by logo

About Me!

Hi Kairen here, single mum to two. Striving to help other parents get organised and manage on limited funds. Read More....

Posts and pages on this blog may be sponsored or affiliate/collaborative and may have affiliate links post. See our disclosure policy for more details.

 

 

Lifestyle & Home Planner

Lifestyle & Home Planner

Lifestyle & Home Planner

  • Blogging
  • Crafts
  • Recipes
  • Garden & Home Improvement
  • Health
  • Home Things
  • Money
  • Online Dating
  • Parenting
  • Planners
  • Reviews
  • Work
  • Entertainment
Food Advertisements by logo

Current Bestsellers – updated daily

Bestseller No. 1 Dotted Bullet Journal/Notebook - A5 Hardcover Dot Grid Notebook with Pen Loop - Premium Thick Paper - Page Dividers Gifts - Lemome
Dotted Bullet Journal/Notebook - A5 Hardcover Dot Grid Notebook with Pen Loop - Premium Thick Paper - Page Dividers Gifts - Lemome
£10.99
Buy on Amazon
Bestseller No. 2 Boxclever Press Budget Book. Monthly bill organiser and accounts book to keep track of personal finances, with pages to track home expenses and pockets for receipt storage. (Teal)
Boxclever Press Budget Book. Monthly bill organiser and accounts book to keep track of personal finances, with pages to track home expenses and pockets for receipt storage. (Teal)
£8.99
Buy on Amazon
Bestseller No. 3 Royal & Langnickel 5.8 x 8.3 inch Hardbound Sketch Book (80 Sheets)
Royal & Langnickel 5.8 x 8.3 inch Hardbound Sketch Book (80 Sheets)
£3.59
Buy on Amazon
Want Your Own Money Earning Blog

Whoohooo

uk single mom 1000px

Gingerbread

Join Gingerbread

Earn with Dealspotr

coupon codes

Did you know

…Disney has a resort in Hawaii? You can buy or rent a DVC timeshare resale and vacation at any of Disney’s resorts in Florida, South Carolina, California and even Hawaii. Save money by shopping on the DVC Resale Market

Food Advertisements by logo

Recent Posts

  • Are you a mum? How to have some fun
  • What People Say About Money Isn’t Always True
  • Unusual Places to Meet Gentlemen
  • Home
  • Recipes
  • Crafts
  • Money
  • Parenting
  • Dating
  • Blogging
  • Planners

Follow Me

@kairenv

Load More...Follow on Instagram

Copyright © 2019 · Sprinkle Pro On Genesis Framework · WordPress · Log in

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Read More
Privacy & Cookies Policy