How To Choose Life Insurance For Single Moms

Life insurance for single moms

Life insurance for single momsDid you know you can get life insurance for single moms? Out of the 11 million single parents in the U.S. that have children under the age of 18, 80% of the families are looked after by single mothers. Being a single mom can be difficult, but when you have life insurance, there’s one less thing to worry about because you know your child will always be covered.

Another interesting fact is that single parents is the largest sector in America that doesn’t have life insurance. Households with single mothers are the ones that need life insurance the most. If you’re a single mom and you want to take out a life insurance policy, then you’ve come to the right place.

In today’s article, I’ll give a breakdown of how to choose the right plan for your needs. This is so you get the right amount of coverage and how to compare costs. I’ll also mention the top best life insurance companies to pick from. Keep reading to find out more.

Affordable Life Insurance For Single Moms

The reason single moms may not have life insurance is because they believe it’s too expensive. When you’re living off one income, it can be difficult to budget for extra expenses. But one of the benefits of life insurance is that these policies are affordable for single moms.

You can get life insurance that offers plenty of benefits for as low as $21 per month or $249 a year. Some policies will offer you a $500,000 cover for that low amount. If you have a tight budget, see where you can cut costs so you can get life insurance because it will be worth it in the long run.

Term Life Insurance Offers Plenty Benefits

If you’re looking for excellent life insurance plans, then consider taking out term life insurance. This is because it’s inexpensive, which makes this type of plan ideal for single mothers. One of the advantages of term life insurance is that you can safeguard your children if you pass away. The money accumulated will be given to your children in the event of your death.

Term life insurance is designed to cover you for a specific time such as 10, 20, or 30 years. For a single mom, you can sign up for a term life policy until your children leave school. The average cost of term life insurance is $26 a month for a 20 year term.

Pick The Correct Amount Of Life Insurance

Before you choose a life insurance company, you must first determine the amount of insurance you need. When choosing how much coverage you need, you should multiply your annual income by 7 or 10 times.

For example, if you earn $50,000 annually, multiply it by 10 and you’ll get $500,000. This will give you an indication of how much money will be paid out to your children in the event of your death. And the advantage is that life insurance is income tax-free.

But you don’t have to purchase a life policy that’s in the 7 to 10 bracket. Get a policy you can afford. You can always increase your terms when you can afford it.

Always Compare Life Insurance Companies

No life insurance company is the same. That’s why it’s important to compare companies before you choose one. One company may offer lower premiums but with limited benefits, while other insurers may offer more benefits at an affordable cost.

As a single mother, don’t settle on the first life insurance policy you find. Research multiple companies to see what they offer and so you can compare quotes. By doing this, you can save up to 70% on premiums. 

You Must Have A Beneficiary

Death benefits can’t be paid out to children as the beneficiary because they won’t know how to handle large sums of money. When taking out single parent life insurance, make sure you have a trusted beneficiary on your policy.

Naming your child as a beneficiary will have its drawbacks. If your child isn’t old enough to handle finances, the insurance company will pay the money out to a guardian that’s assigned by the court. This guardian may not be someone you chose to handle the death benefit proceeds.

If you want to name your child as the beneficiary, it’s best to appoint a custodian as a beneficiary for your child in the event of your death. This way you choose who gets to handle the finances for your child’s benefits if they aren’t yet old enough.

Choose someone you trust to be the custodian such as your sibling, aunt, uncle, or parents. Another way you can ensure your child receives their benefits is to set up a trust. Appoint someone to hand over the benefits to your child when they are old enough to handle their finances.

How Easy Is It To Buy Life Insurance?

Another reason single mothers don’t buy life insurance is because they may believe it’s too difficult or the process is time consuming. But buying life insurance is effortless. Use the internet to compare quotes. Once you’ve found the life policy you want, phone the company to schedule a free health exam.

You may have to answer a few questions on the phone. But after a few weeks, you’ll be able to make your first payment and you and your child will be covered.

Top Best Life Insurance Policies For Single Moms

Company Features Pros Cons
State Farm
  • Over 100 years of experience
  • Has over 83 million policyholders
  • Offers multiple life policies
  • With coverage starting at $100,000
  • Excellent service
  • Affordable policies
  • Has excellent financial strength
  • May not be available in all states
  • Changes to life insurance can’t be done online
  • A++ rating
  • Sample monthly cost of $10
  • Term life available for 10,15, 20, and 30 terms
  • Level premiums are guaranteed on term policies
  • Affordable
  • Offers multiple life policies
  • Suitable for healthy people with HIV
  • Limited information for costs on website
  • No immediate coverage
Northwest Mutual 
  • A++ Rating
  • Over 160 years of experience
  • Custom term life policies
  • Coverage amounts starting at $100,000
  • Offers multiple policies
  • Easy to sign up
  • Affordable
  • Limited information on website
  • Only offers 20 years on term policies

Final Thoughts

Choosing insurance for single moms doesn’t have to be difficult. You may have to do a bit of research on the different life insurance companies to find the best one for your needs. But this won’t take up a lot of your time.

Single moms are budget conscious and if you’re the same, then you’ll want to make sure you compare costs of the life insurance companies you find online. You also want to make sure you read the fine print on your policy. Read the terms and conditions of your policy to ensure you get what you’re paying for.

Use the information in this guide to help you find an excellent life insurance policy for single moms so you can find one that’s affordable and has the benefits you want.

Do you have any experience with the top insurance companies we mentioned in our table? Let us know what your experience was like in the comments section below.