Term Life Insurance Articles
The Best Types Of Life Insurance For Single Parents
2010-02-05
Many single parents decide to buy term life insurance coverage to protect their children and their property, and this can be a great idea. However, the needs of a single parent are different from the needs of other types of buyers, and as many types of life insurance policies are available, a bit of research can greatly help in picking a plan that suits the single parent's strengths and limitations.
A level term life insurance policy, for instance, is a very popular choice in this particular group. Level term life insurance policies lock in a certain premium for the length of the term. There's no return on the premiums at the end of this period, but single parents can get a lower rate on a level policy than they'd get with a policy that renewed every year or every five years. A 30 year policy can protect investments and provide security for a child's future. While the term life insurance quotes for this type of coverage are higher than for shorter plans, in the long term, the actual cost is quite low. If the cost is too high for a level policy, try adjusting the coverage amounts. Remember, you want your child to be well taken care of if you die during the policy, but extraneous amounts of coverage aren't necessary.
Single parents often look for investment opportunities that will provide them with retirement income, and many refuse to buy traditional term life insurance plans because the premiums are simply lost at the end of the policy. For these parents, convertible term life insurance might be a great buy, especially if the policy buyer is fairly young. Convertible term life insurance can become whole life insurance after a certain point, as long as the account is kept in good order. Whole life policies also allow for a return of premiums after the policy holder reaches retirement age. However, this is an example of yet another policy type that tends to be fairly expensive. Since premiums are eventually returned, however, it's a good choice for single parent, assuming that the rates are affordable.
Never buy a term life insurance policy without fully researching the plan's contract, and look into areas such as exclusions to ensure that your beneficiaries will receive a payout. Single parents should discuss every available option with their insurance agents and find another adult to discuss the policy, and perhaps even act as a temporary beneficiary if the single parent dies early in the term. Life insurance is a great buy that can provide a lot of peace of mind, but a careful approach is important.
Free Insurance Quotes
Many single parents decide to buy term life insurance coverage to protect their children and their property, and this can be a great idea. However, the needs of a single parent are different from the needs of other types of buyers, and as many types of life insurance policies are available, a bit of research can greatly help in picking a plan that suits the single parent's strengths and limitations.
A level term life insurance policy, for instance, is a very popular choice in this particular group. Level term life insurance policies lock in a certain premium for the length of the term. There's no return on the premiums at the end of this period, but single parents can get a lower rate on a level policy than they'd get with a policy that renewed every year or every five years. A 30 year policy can protect investments and provide security for a child's future. While the term life insurance quotes for this type of coverage are higher than for shorter plans, in the long term, the actual cost is quite low. If the cost is too high for a level policy, try adjusting the coverage amounts. Remember, you want your child to be well taken care of if you die during the policy, but extraneous amounts of coverage aren't necessary.
Single parents often look for investment opportunities that will provide them with retirement income, and many refuse to buy traditional term life insurance plans because the premiums are simply lost at the end of the policy. For these parents, convertible term life insurance might be a great buy, especially if the policy buyer is fairly young. Convertible term life insurance can become whole life insurance after a certain point, as long as the account is kept in good order. Whole life policies also allow for a return of premiums after the policy holder reaches retirement age. However, this is an example of yet another policy type that tends to be fairly expensive. Since premiums are eventually returned, however, it's a good choice for single parent, assuming that the rates are affordable.
Never buy a term life insurance policy without fully researching the plan's contract, and look into areas such as exclusions to ensure that your beneficiaries will receive a payout. Single parents should discuss every available option with their insurance agents and find another adult to discuss the policy, and perhaps even act as a temporary beneficiary if the single parent dies early in the term. Life insurance is a great buy that can provide a lot of peace of mind, but a careful approach is important.
