Life Insurance

Single Parents: How Much Life Insurance Do You Need?

Having a life insurance coverage plan from an insurance company in Pakistan brings with it several benefits. One of the main benefits that life insurance coverage gives its users is that in case of an unexpected death the family of the deceased is looked after and taken care of by the insurance plan. Hence, you can be assured that despite you being physically absent your family will be taken care of financially. 

Besides this financial stability, life insurance also provides several other benefits too. It helps you paying off your mortgage, your debts as well as in funding your child’s education.  Therefore, due to all these benefits if you are a single parent you should really consider having the best life insurance in Pakistan

As a single parent, you are aware that life insurance is vital for you and plays a very important part in the future of your children. Death is unexpected and can arrive at any time and in such scenarios, it is important to be assured that your family will be taken care of. 

However, the question that arises is how much life insurance do you need? The following are some of the questions that you should answer in order to decipher how much life insurance is sufficient for you as a single parent. 

  • How much do you earn? 

In the event that something happens to you, your life insurance provides your family with financial stability. Generally, life insurance policies should be such that they cover half of your annual income but being a single parent may require you to have more coverage.

  • Where will the money be used?

Life insurance covers you after you die. Despite being aware of this it is important to know where exactly this money will go and how will it be used after you die. This mostly depends on the ages of your kids and how old they are when you die. For example, with older children, this amount can be used to fund your child’s college education fee.

  • Are you in debt?

After you die the number of debts you owe will be assessed. Initially, your assets will be utilized to pay for your debts, and then eventually the people you owe money to will turn towards your life insurance. Hence if you have a greater amount of debt then you need greater life insurance to assure greater coverage or else the burden may come on your children or even your spouse if you are not yet legally divorced. 

  • Coverage: How much can you afford?

When you decide to buy life insurance, you need to consider your budget and how much money you are willing to spend on your coverage plan. It is advised to purchase it at a younger age as that is more beneficial. 

Therefore, being a single parent you must consider the questions above and after answering them you can decide how much life insurance you will need more effectively.