Raising a child is an exciting as well as a challenging task. While it may take a village to raise a child, there are times when you might have to do it alone. Specific circumstances like the death of your partner, a divorce or any other reason, you might have to bear the responsibility of your kid solely. Being a single parent, you shoulder several duties like nurturing your kids, fulfilling their financial needs, and so forth.

Since you’re the breadwinner of the family, your child is dependent on you. But have you wondered what will happen if you are no longer around? To ensure your little one continues to live comfortably in your absence, buying a term life insurance is crucial. Term insurance could provide your child with a steady flow of income if anything were to ever happen to you.

Before purchasing a term policy, let’s take a look at these three crucial reasons, which show why every single parent needs a term insurance policy:

  1. Cost of raising a child – Securing your Childs Life Goals

The first and the most crucial factor you should consider is the overall expenditure of your kid when you’re not around. Your child’s basic needs will be food, clothing, medical, education and entertainment. However, you should take the big picture into account regarding the type of costs, which are essential for the person taking care of your child in your absence. Therefore, you should consider these expenses and the term coverage selected should be based upon your kid’s age and requirements. For instance, if your child is young, the coverage amount you opt for might be higher to fulfill his needs. A detailed financial planning is necessary before making this call.

  1. Debt & financial obligation

There might be times when you might have taken loans from the market to accomplish specific financial goals. For instance, after your divorce, you might have taken a home loan to move out of the house and start afresh with your kid. In case you have any outstanding debts like car loan payments or home loan, buy term insurance. Term insurance would ensure that your child is not loaded with the financial burden in your absence. It will easily cover for your past liabilities without letting you worry about your child’s financial well-being when you’re gone.

  1. Child’s educational expenses

As a parent, it is obvious that you have big career plans for your little ones. Many people keep their child’s education as their top priority and strive hard to generate savings to fulfill their educational needs. However, the educational costs in India are increasing with every passing day. According to the various studies, the average amount of fees of a good college can cost you over Rs 20-40 Lakhs over the period of the degree. Moreover, if you have two or more kids, these costs can be too much for you. Although you might be contributing to their college funds regularly, what will happen if you suddenly pass away? In that case, purchasing adequate term insurance coverage will ensure your children receive a quality education in your absence. Moreover, it will keep your kids away from opting for a student loan to pursue higher studies.


In a nutshell, we all know that the life of a single parent is never easy. However, with the right help, you will do just fine. When you purchase a term policy for your children, you should be careful while naming a beneficiary.  Many insurance companies don’t directly offer a payout to minors. While choosing a term plan, you should appoint an adult guardian for the benefit of your little one.

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