Why Single Parents Must Have a Life Insurance Policy
Living in an extremely judgemental society, single parenting is still a taboo for some in India.
Raising a child is one difficult task, which drains the single parent not just emotionally and physically, but financially as well. Juggling between responsibilities is one of the most difficult aspects of single parenting as well as the burden of financial responsibilities.
With regressive ideas constructed years ago in a completely different social landscape, the concept of single parenting is stigmatized. However, the instance of single parenting is now common in India.
The reason for single parenting could vary from person to person. It could be due to the demise of the partner, mutual separation, etc. Living in a time, where parenting is itself a challenge, with just one parent it becomes a tedious challenge. As a parent, you want the best for your child. However, have you ever imagined a situation if one day you are not around anymore? Have you wondered after you, who would take the responsibilities of your child?
Of course, the mere thoughts of these situations will give you goosebumps; it is better to be safe than sorry. Shield your child’s future and buy a life insurance plan. We are born to die and if your death hurts anyone in monetary terms then you need to buy a life insurance policy.
What is a life insurance policy
In layman’s terms, a life insurance policy is money related security intended to deal with every one of the costs if there should arise an occurrence of any crisis. It is an endeavor between an insurance company and a policyholder.
Under a Life Insurance Policy, the insurance company consents to pay a specific amount to a nominated beneficiary in the demise of the policyholder. Reciprocating about the equivalent, the policyholder consents to pay an amount of money as a premium either regularly or as a single premium. On the off chance, if covered by the policy, then the coverage for critical illness can likewise be given.
Why single parents need a life insurance policy
Being a single parent, you cannot rely on somebody else to take care of your child’s future expenses if you are not around. Paying educational fees, taking care of health, nurturing, etc; there are a heap of responsibilities that come with single parenting.
It is recommended to buy a comprehensive plan to protect your child if something unfortunate happens to you. Here we have listed some reasons why a life insurance policy is bought by single parents:
- Raising a child might sound easy but it is indeed a costly affair. Moreover, the younger the child the higher the expenses. On an average day, the basic amenities of a child are food, transportation, clothing, medical, education, etc. No matter how basic the picture looks, these costs are essential regardless of the child’s age and requirements. Buying long term insurance depending on the coverage will help your child and will insure that he/she is being supported in your absence.
- When you are a single parent, chances are that you might have financial obligations, which include mortgage payments, home loans, car loans, etc. To ensure that your child does not face a crisis, it is advisable to buy a life insurance policy and take the higher coverage, which covers your debts to protect your child from the burden.
- In the competitive world, education is a reliable factor to shape your child’s career and build his/her future. Besides, no parent wants to compromise on the education of his or her child. Buying a life insurance policy ensures that your child will receive a quality education and will not end up with anything less because of the monetary barrier.
Companies providing life insurance
The following is a list of companies which offer life insurance:
- Bharti AXA Life Insurance Company
- ICICI Prudential Life Insurance Company
- HDFC Standard Life Insurance Company
- Life Insurance Corporation of India
- Reliance Life Insurance Company
- SBI Life Insurance Company
- TATA AIA Life Insurance Company
To conclude
Single parenting is not at all a ruddy picture, nor does it offer any additional reward for you doing it with utmost courage and patience.
Consider all the possibilities and buy a life insurance policy so that your child does not face any financial crisis. Moreover, do not let single parenting become a weight on your shoulder for the rest of your life. Taking care of yourself is as important as taking care of your child.
Be cautious while naming the beneficiary. A claim against the policy will not be an aid to your child in case he/she is a minor. Regardless of whether you need to name your kids as beneficiary, you will likewise need to name a guardian for their advantage. On the off chance that you do not make a trust or make any lawful game plans to deal with the cash, the court will name a guardian, an exorbitant procedure, to deal with the returns until the child turns 18 or 21, contingent upon various states.
