Being a single parent is challenging. You have to be the provider, protector, and caregiver, all while carrying the emotional and financial load alone. While you work hard to give your children the best life possible, one thought may quietly worry you: “What if something happens to me?” That’s where term insurance comes in. In this article, you will learn why term insurance for single parents is crucial and what to look for in the right plan.
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Term insurance is a type of life insurance that provides coverage for a specific period, such as 10, 20, 30 years, or even longer. If the insured passes away during the term, the nominee named in the plan receives the full sum assured as a payout.
If you are a single parent, term insurance is one of the most thoughtful things you can do for your children. It guarantees that they have a helping hand if you are no longer able to care for them. From school fees to everyday living expenses, the payout can help them manage when they need it most.
As a single parent, there are many important reasons to make term insurance a key part of your financial plan.
Being a breadwinner, your income is usually seen as the only source of support for your kids. In your absence, term insurance will guarantee that your kids can maintain their way of life. The death benefit will enable them to cover daily expenses, housing, education, and other requirements.
Term insurance is much more affordable than whole life insurance. A term plan is a practical step for single parents working under a tight budget. Lower premiums mean you can secure significant coverage.
Single parents must pay for mortgages, loans, and credit card debts. After you are gone, those debts will weigh heavily upon your children. Term insurance would pay off the debts and free your family from that burden.
With term insurance, you are relaxed knowing that your children will be taken care of financially if something happens to you. This way, you can focus on your daily responsibilities to achieve your goals for a brighter future with your children.
Term insurance offers numerous flexibilities. You can pick a term plan that matches your family's needs, and if necessary, you can also increase or decrease the sum assured to meet your evolving needs.
Term insurance premiums paid are eligible for tax savings under Section 80C of the Income Tax Act. This allows you to save up to ₹1.5 lakh per financial year.
With a term plan in place, you have peace of mind knowing your family will be financially protected in an unforeseen circumstance. This security allows you to focus on wealth-building efforts, such as investing in other assets, planning for your children's education, and more.
Here are some real-life situations where single parents found term insurance useful:
Kavya is a 35-year-old single mother raising two young children. She works as a school teacher and wants to make sure her kids never have to stop studying in case of her demise. She bought a term insurance plan that will cover their school and college fees if she’s not around to support them. It gives her peace of mind and financial safety for her kids.
Ravi lost his wife a few years ago and is raising his son alone. He has taken a home loan and is also saving for his son’s higher education. If something happens to Ravi, the insurance money can help pay off the loan and continue his son’s education. This way, his son won’t have to worry about money during tough times.
Selecting the right term insurance for parents requires careful consideration and research. As a single parent, you’re the one holding everything together. So your insurance should do the same if you're not around. Here are the 7 important factors you should confirm before buying term insurance.
Think about your child’s education, daily expenses, rent or home loan, and future goals like college or marriage. Choose a cover amount that takes care of all this. With life insurance for single mothers, your child won’t have to worry about money if you're not there.
The nominee is the person who will get the money if something happens to you. Usually, it’s your child or a legal guardian. Make sure the nominee details are correct and up to date.
Pick a plan where the premium is easy to pay every year or month. You don’t want to miss payments. Try to lock in low premiums by buying early.
Be honest about your medical history, lifestyle habits, and any ongoing treatments. Hiding anything can lead to a claim rejection later.
Choose a term that covers you until your child becomes financially independent. For most single parents, this means a term of 20 to 30 years.
Compare features, premiums, and claim settlement ratios from different insurers. Look for plans that offer good coverage at a fair price.
Some extra benefits (called riders) can make your policy stronger. Look for useful ones like:
ACKO Life Flexi Term Plan is a modern, highly flexible, customer-centric solution that lets you customise your plan according to your needs. Competitive premiums ensure that you receive comprehensive financial protection without overspending.
ACKO's fully digital policy management system enables you to make any policy changes easily, including:
Best ACKO Term Insurance Riders for Single Parents in India
Single parents can enhance their policy with valuable ACKO riders such as the ACKO Life Accidental Death Benefit Rider, the ACKO Life Accidental Total Permanent Disability Benefit Rider, and the ACKO Life Critical Illness Benefit Rider.
The Critical Illness Rider covers 21 critical illnesses, including life-threatening common illnesses among women, such as breast, cervical, fallopian, and ovarian cancer.
To help you choose the appropriate term insurance coverage, here is a rule of thumb based on the income level:
For annual incomes within this bracket, you must look for 10 to 12 times your income. That is approximately ₹50,00,000 in term insurance coverage that protects your children with a very good safety net.
If your earnings are between ₹10,00,000 and ₹20,00,000, you should opt for coverage between 12 to 15 times your income.
The cover amount must be 15 to 20 times your income. You will require between ₹3,00,00,000 and ₹4,00,00,000 or more for comprehensive financial security for your children's education, lifestyle, and future requirements.
NOTE: You can use a term plan calculator to estimate the right coverage or consult a financial expert for personalised advice for informed decision-making.
Term insurance is significant for single parents. Their children are everything, and knowing they are financially secure gives them immense peace of mind. As a hardworking, dedicated, and loving single parent, stay informed, choose the best plan according to your needs, and secure your family's future
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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