If you’re a single mom or a single dad, life insurance is a financial protection must-have. If one parent dies in a two-parent household, the surviving parent may be able to provide income to keep up with expenses. But single parents may not have another source of financial support for their kids if they pass away unexpectedly.
A life insurance policy creates a safety net for your child’s everyday expenses, continuing education, and care. Make sure they get all of the support they need by getting the right amount of life insurance and choosing your beneficiaries carefully.
How much life insurance do single parents need?
The exact amount of coverage you need depends on three main factors.
Income: Experts recommend having a death benefit of at least 10 to 15 times your annual income. This can cover everyday expenses like bills and groceries.
Outstanding debt: Your child won’t be responsible for your debts, but any co-signers will, and creditors can seize property for loans that weren’t co-signed. Your policy should last as long as your longest debt and be large enough to pay it off.
Future expenses: If you plan to send your child to private school, pay for extracurriculars, or establish a college or savings fund for them, include that in your calculations.
Add those three factors together to get a sense of how much life insurance coverage to buy. You’ll need to include end-of-life expenses for yourself, too. You may need more coverage than someone who can rely on a surviving co-parent to contribute to your child’s care.
→ Learn more about calculating how much life insurance you need
What type of life insurance do single parents need?
Term life insurance
The best type of life insurance for single parents is term life insurance. Term policies are flexible, easy to understand, and affordable.
A 35-year-old parent who doesn't smoke and only has one or two minor health conditions can buy a $1 million, 20-year term life insurance policy for $42 to $52 per month, according to Policygenius data.
Whole life insurance
Whole life insurance, a type of permanent life insurance and the most common alternative to term life, offers lifelong coverage and a savings feature. However, whole life is five to 15 times more expensive than term life.
The extra features aren’t worth the cost unless you’re looking to use life insurance to diversify your investment portfolio or have long-term financial obligations or coverage needs, like dependents who require lifelong care.
→ Read more about the differences between term life and whole life insurance
Group life insurance
If you’re a single working parent you might have access to group life insurance through your employer. Group policies are easy to qualify for and often free or heavily subsidized, but they rarely provide the level of coverage you need — death benefit payout amounts are usually low — just one or two times your annual income.
That said, a group policy — also known as employer-provided life insurance — can be a coverage option for single moms and dads on a budget or who may not qualify for a personal term life insurance policy.
If you only have employer-provided life insurance, consider buying a personal term life policy to complement your group plan.
Final expense insurance
Final expense life insurance, or burial insurance, is a type of permanent life insurance designed to cover your funeral and burial costs.
Burial insurance is best for people who don’t qualify for traditional coverage due to serious health issues.
Best life insurance options for single moms and dads
Best term life insurance for single parents: Brighthouse Financial
Best final expense insurance for single parents: Mutual of Omaha
Methodology: How we chose the best life insurance companies for single parents of 2023
We don’t get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends.
Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.
Best term life insurance for single parents
2023 Policygenius award winner
Brighthouse Financial
5.0
No-medical-exam option
Why we chose it
Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it a great choice for people who want to get life insurance coverage without having to take the medical exam.
Pros and cons
Pros
Extremely affordable
Instant-decision applications
Best-in-class no-exam option
Cons
Traditional term life not available in CA, IL, LA, ME, or NY
Term life applicants limited to ages 25-50
For single moms and dads in their 20s, 30s, and 40s, Brighthouse Financial offers some of the most affordable and convenient coverage options on the market.
The company features one of the best overall life insurance products for people age 25 and up — it offers quick approvals, no-medical-exam options, and affordable premiums.
Best final expense insurance for single parents
Mutual of Omaha
4.5
No-medical-exam option
Why we chose it
Mutual of Omaha is a reputable company that offers a variety of life insurance products — including a no-medical-exam option — so that you can select the type of life insurance that best suits your needs.
Pros and cons
Pros
No-medical-exam options for older applicants
Strong financial and customer ratings
Cons
Policies are more expensive than average
Slow turnaround time
Mutual of Omaha offers a variety of products for burial insurance, including simplified issue and guaranteed issue life insurance options, so people with a wide array of health conditions can get coverage that’s best suited for them.
Mutual of Omaha’s product offerings are cheaper than some of its competitors. It also offers coverage amounts as low as $2,000, which can help single moms and dads on a budget keep their premiums low.
This type of policy is available for people age 45 and up, and can be a good option for single parents who may not qualify for traditional term life.
Should you buy a life insurance policy for your child?
No, in most cases, buying a standalone life insurance policy for children is not worth it. Life policies for children are costly and unnecessary — unless your child has an illness that will make getting their own policy difficult as an adult.
If having your kid covered would give you peace of mind, you can add a child insurance rider to your own policy for about $5 per month. Riders are policy add-ons that offer supplemental coverage under special circumstances.
Who should you name as the beneficiary of your policy?
Many parents instinctively want to make their children the beneficiary of their life insurance policy. This isn’t, however, a good idea. Minors can’t legally accept life insurance money, potentially causing the policy’s death benefit payout to get stalled in legal proceedings for months.
Instead of naming your child, set up a trust and name it as your beneficiary. You can specify how the money is distributed, how much is spent, and what it can be spent on, and a trustee will carry out your wishes.
“A will designates guardianship, but how assets are distributed is contestable," says Patrick Hanzel, certified financial planner and advanced planning manager at Policygenius. "Whoever the guardian is would be entrusted to provide for the minor under court supervision, but a lot could go wrong. You can define exactly what you want in a revocable trust.”
Note that money in a trust can sometimes lower a child’s eligibility for financial aid. A financial advisor can help you make a comprehensive plan for your child's future.
How to protect the death benefit for your child
Single parents should share their end-of-life plans with their child’s guardian and other loved ones. Tell someone you trust where to find important documents like your life insurance policy and contact information for any lawyers or financial advisors you’ve worked with.
Make sure they know how to file a life insurance claim and where to get the documents they’ll need to begin the process.
If you are the child of a single parent and know you’re the beneficiary of their life insurance policy but can’t find the details, you can search for it through your state’s insurance department.
Buying a life insurance policy is one of the best things you can do to protect your child’s financial future. A few simple safeguards can guarantee that your child has the support they need no matter what.
Frequently asked questions
Do single parents need life insurance?
Life insurance is essential for single parents. A policy guarantees financial support for your child and other loved ones when you pass away.
What is the best life insurance for a single parent?
Most parents should buy term life insurance because it’s affordable and flexible. If your child will depend on you for life, you might consider whole life insurance.
How much does life insurance cost for single parents?
It depends on how much coverage you buy and your age and health. A 35-year-old parent might pay $42 to $52 per month for a $1 million, 20-year term policy.
