Single Parents and Life Insurance

[BNTRS]

I was a tad shocked to find this on the Opera home page:

Going naked: Why don’t single parents have life insurance? | Prism Money

Look who they tapped for comments

 

[Full Throttle]

I was a tad shocked to find this on the Opera home page:

Going naked: Why don’t single parents have life insurance? | Prism Money

Look who they tapped for comments

Nice rule of thumb for coverage: 6% to 10% of salary.

 

[Josh]

I think that was an uber fail when it should be 6 to 10 times salary, but at least they're telling them to get coverage.

 

[padthaiforlunch]

Perhaps single parents are holding off on the insurance buy because they aren’t supporting their children; maybe there’s child support coming from another parent who doesn’t live with them.

Or maybe she doesn't want the ex to benefit from her death.

 

[Guest]

I have noticed in AZ lately, in divorces, the judges are requiring the spouses to carry life insurance on each other until the youngest child is 18.....

I actualy think thats a great idea, if dad is paying child support and he dies, then what?

I see it in the divorce decrees but how do you enforce it? If dad dies and he didnt pay the premiums, well, what are you gonna do to dad as punishment? LOL

 

[BNTRS]

This isn't new, it's been a part of divorce decrees for a long time.

The answer to your question is basically nothing. There are certain ways to try and ensure premiums get paid, or at least put additional measures in place to alert the bene to possible lapse. Irrevocable beneficiary status being one of those measures, but this is becoming rare.

Yes it's a good idea, but there will always be the deadbeats who don't follow it even if there is a judge telling them they have to.

 

[VolAgent]

It all comes down to love and a sense of responsibility. Why would you buy life insurance to take care of someone you don't really love, and don't really feel responsible for?

People are selfish and are no longer willing to make any sacrificies for others. That grande latte at Starbucks is more important than some life insurance. And yes, there are tons of single parents that can barely just get by. There are many, many more than do more than just get by.

Also, I put some blame on term insurance and all the "gurus" who advocate it. Is term insurance bad? Of course not, but being told it is the only form of life insurance you should ever buy is bad. People aren't stupid, they realize that term is designed so they'll outlive it. Many people see that as throwing money away.

 

[LGilmore]

"I put some blame on term insurance and all the "gurus" who advocate it"

Very much so. The constant push of "you only need coverage for 20 years.." delvalues life insurance. For a person who has marginal concern for his/her family they think they can skate by for those 20 years and not pay for any insurance, cause certainly they're going to be around longer than that....

 

[Mark]

I thought of this when I saw the post.