For a peace of mind, you should ensure that you and your loved ones are sufficiently covered with the right life insurance policies.
What Types of Life Insurance Are Available to Single Mothers?
There are two main types of life insurance and variations on each type.
Term Life Insurance for Single Mothers
Term life insurance can cover you for the years you think you’ll need coverage, such as when your children are young and growing up. You can buy a term life insurance policy for a specific term, or the number of years, such as 10, 20, or 30 years. If you die during this term, the policy pays the death benefit.
Term life insurance is fairly inexpensive and easy to get. It is sufficient for the insurance needs of most families. If you are interested in obtaining one or more term life policies, you should get them sooner rather than later as the premium will go up the older you get.
Whole Life Insurance, or Permanent Life Insurance for Single Mothers
Whole life insurance policies provide you with coverage for your entire life. Unlike Term Life Insurance policies, these policies have a cash value that grows tax-deferred as you pay premiums. It is possible for the policyholder to borrow against the cash value or cash the policy out at any time.
Whole life insurance is more expensive and more difficult to procure. If you are considering whole life insurance for your family or as an investment vehicle, you should contact your financial advisor.
Read on for more on the various uses of life insurance and whether life insurance would be useful to you in your situation.