Life insurance for single parents

Life insurance is one of the most important tools that any parent can use to safeguard the future of their children in their absence. Its significance is even more pronounced for single parents. In your absence, your child may not have anyone else to rely on financially. Therefore, buying life insurance becomes vital for such parents. A lot of people might skip buying life insurance, thinking of it as an added expense. However, life insurance for single parents is not an expense but an investment that you can make to protect your child against life’s unpredictability.

Why do single parents need life insurance?

You may have a steady job and income to support your child now, but life is uncertain and things can change at any time. An unfortunate incident can wreak havoc on your world and disrupt the child’s life. In such a case, the sum assured from a life insurance plan can provide your child with the means to carry on their life with dignity and comfort. Life insurance for single parents can offer you peace of mind, knowing your child will be safe and secure in your absence. Life insurance also enables you to slowly but steadily build a savings pool for your child’s use without any unwanted economic burden.

There are many great policies available in the market. You can compare and pick the best life insurance for a single mom or dad, as per your needs and budget. Life insurance can also offer you additional benefits like a critical illness and terminal illness cover that can be used in times of a health crisis. Some plans also come with benefits such as a permanent disability cover and an accidental death cover that provide increased financial protection to your kids in case something happens to you.

3 reasons why single parents need life insurance

Here are 3 reasons why you must invest in life insurance for single parents:

a) To support your dependents: A life insurance plan is essential for single parents as it can support all your dependent family members in your absence. Not only does it safeguard your children, but it can also be used to support your parents or siblings financially. The sum assured from a life insurance plan can be used to create a financial surplus for all your loved ones. This can provide help and assistance to them at an emotionally difficult time in their lives.

b) Save taxes: Life Insurance can be a great tax* saving tool for single parents. As a single parent, the responsibility of running the house lies on your shoulders and even little savings can be instrumental. As per Section 80C of the Income Tax Act, 1961, you can save up to ₹ 1.5 lakh per annum on your life insurance premiums. This can reduce your tax* liability considerably and further help you save more for your needs and your child’s wellbeing.

c) Habit of saving: Buying life insurance for single parents can be a great way to set in financial discipline. Life insurance helps you save in a consistent manner. It helps you inculcate good financial behaviour. You are able to build a suitable pool of funds with dedicated and disciplined savings. In addition to this, your child also learns and picks up this great financial habit from you. This can help the child in their adult life and instil an understanding of financial planning from a young age.

Conclusion

Life insurance for single parents can be a simple way to solve multiple financial problems. It can enable tax savings, financial discipline, and help you leave a legacy behind for your loved ones. So make sure to compare different plans and pick the best life insurance for single moms and dads.