As A Single Parent, How Much Life Insurance Coverage Is Needed?

To determine how much life insurance a single parent needs can be a complex puzzle. Single parents have unique concerns that other insurance holders do not have, such as where their child will live should they die.

Consider if your child will live with someone who will have the financial security necessary to support a child or if supporting your child will become a financial burden to that person.

A single parent also needs to consider the things a child will need should they pass on and leave the child by their self, such as the cost of education, the cost of college tuition and medical costs among others.

As a single parent, also consider any other needs that the child might have that your life insurance could help cover.

If your child will become a financial burden to whomever they will be living with, you might consider creating a trust that the guardian can access to pay for these expenses or making the guardian the beneficiary of your policy.

Another consideration would be setting up a trust fund using some of your death benefit. This will help provide for a child even after your death and will help to make sure your child is cared and provided for, even if you personally can not do it.