Here’s the thing with life insurance for moms:
You know you’re supposed to have it, but you probably don’t because you think it is not affordable. Guilt and stress ensue. Ain’t nobody got time for that!
Mama, you’re not alone …
A Genworth survey found that 69% of single-parent families with kids at home are without life insurance, compared with 45% of married-parent families.
Should a single mom have life insurance?
In general, you need life insurance if other people depend on you: You are a parent to minor children, your spouse depends on you, your aging parent or disabled sibling depends on you.
You should buy life insurance when you have a first or another baby.
You should buy life insurance when you get a divorce.
If you have a business, pet or philanthropic cause you want to leave money to, an investment in life insurance can benefit more than just a biological family.
Bestow stands out from other life insurance companies promising affordable term life insurance:
- Prices. Sample Bestow offering for a healthy 30-year-old non-smoker start at $50,000 policy for $10/month (and go up to $1.5 million).
- Short-term life insurance. Bestow offers terms starting at 10 years.
- 100% of the process is online
- No medical or lab exam. Ever.
New to life insurance? Here’s what you need to know:
- Why do moms need life insurance?
- Should I buy term or whole life insurance?
- How much life insurance should a single mom have?
- Best life insurance policy for single mothers
Why do moms need life insurance? Because life insurance is for your family
Single or not, as a mom you need life insurance. As a mom, you probably think you don’t have time or money for life insurance. Think again!
A lot of single moms see life insurance as an expense they just can’t afford.
I understand why this is — single moms are often poorer than married moms, so there is a sense that there is less to invest in insurance. But something else is going on.
When you feel like you don’t have enough money, it is hard to remember how critically important you are to your kids.
I don’t care how broke you are, single or married, you need life insurance for your family.
Chances are, your children are financially dependent on you. If something were to happen, even if once Social Security kicks in, your family would still need more financial support. Life insurance provides that.
Women need life insurance more than men do, yet we are less likely to be covered.
According to the Life Insurance Marketing and Research Association, 56% of women and 62% of men had life insurance coverage in 2016 — down from 57% and 61%, respectively, 6 years prior.
Why is that? According to LIMRA, above, women presume that because men tend to earn more than women, and in homes with kids, the man may be the primary breadwinner, he should be covered. Among millennials — more than 4 in 10 think they wouldn’t qualify anyway — a rate 2X greater than any other age group. (I debunk these myths below, don’t worry!).
So why should women and moms prioritize health insurance, no matter their family status, or earning? Read on!
Women live longer than men
This is old news: Women outlive men. This is true in every country in the world. In the United States, male life expectancy was 73.4 years, and 80.1 years for females — a difference of 6.7 years.
Men — including those with young children living at home — die earlier than women. The reasons: more dangerous jobs, higher suicide rates (the reasons are many and complex), higher propensity for risk-taking, that leads to aggressive driving and traffic fatalities, violence and homicide.
Biology means men are more susceptible to fatal disease, while also less likely than women to seek out medical care.
Women are more likely to be primary custodian/parent to children
When fathers die, their wives, partners and exes are then left fully responsible for the care of any children or other dependents. Because of divorce and separation, 27 percent of fathers live away from their children’s primary residence, a recent Pew study found. In military families, fathers are more likely than mothers to be deployed. Fathers are more likely to be incarcerated than mothers.
In all of the scenarios, mothers are not only the primary caregiver to the children, statistically, they are also the primary financial provider, too. Even in cases where child support is mandated by courts, less than 40 percent is actually received by the custodial parent, and the average sum last year was less than $400.
In other words: While we may be working on more equality between moms and dads (both in terms of financial and logistical care of kids), today the fact remains: If you are a mom, you are likely to be primarily, if not solely, responsible for your kids. A full financial plan includes life insurance.
Women are more likely to be the caregiver to aging or sick loved one
Historically, and around the world, women have taken on the role of caregiver of aging and ill adults in the family.
The number of men taking on this role in the United States has risen dramatically in recent years, but the fact remains: Women still care for the dependent more than men.
Women may soon be more likely to be the breadwinner in married families
While women are the breadwinners by a landslide in single-parent families, this may soon also be the norm in families with partnered parents.
A full quarter of wives in heterosexual marriages make more than their husbands. This figure has been on the rise for decades — and is expected to continue to climb as women gain more power in the workforce and government, and men continue to struggle with unemployment at a higher rate.
Do I need life insurance if I’m a full-time stay-at-home mom?
Quick answer: Yes! Stay-at-home moms need life insurance.
Women often mistakenly believe that life insurance is not for them since they might not have an income today, or their income is low. The reality is that all moms need life insurance until your kids graduate college.
If you are a stay-at-home mom, married to a high earner, your contribution to the family still has a monetary value that would need to be replaced in the event you die. Should you pass, there will be more need for child care, house cleaning, errand running, food preparation, transporting kids, and other tasks that you do that are uncompensated.
No matter your income now, you may one day be a primary breadwinner for your family — even if you continue to enjoy a long marriage.
After all, men are more likely than women to become unemployed (because of various factors, including that recent downsizing trends affect male-dominated industries more). Your partner may also become disabled — temporarily or permanently — fall ill or otherwise be unable to earn.
In all of the scenarios, the family begins to depend on mom’s income. These scenarios may happen in the future. But the sooner you buy life insurance, usually the cheaper it is. As you age, develop health issues, perhaps gain weight, then the premiums go up.
Life insurance is less expensive for women
Because women are less likely to die than men, life insurance coverage is cheaper for us. That means less excuses not to buy it!
Bestow, which is an A+ BBB rated life insurance agency, offers policies starting at $10/month for $50,000 term for a healthy woman. Get a quick quote from Bestow here >>
Or, learn more with our Bestow review.
Types of life insurance
Life insurance comes in two main varieties—permanent life insurance and term life insurance.
What is permanent life insurance?
Permanent life insurance is any policy that lasts for your whole life, while term life insurance only lasts for a specific period of time (the term). As long as you make your monthly payments, a permanent life insurance policy is permanent, meaning that whenever you die, your death benefit will be paid to your beneficiary.
Permanent life insurance typically comes with a cash value that grows as you pay your monthly premiums, earning interest, and creating a savings account you can tap while you are still alive.
Because of these added benefits, permanent life insurance is often much more expensive compared to a term life policy with a similar payout.
Permanent life insurance can come in a number of varieties:
Whole life insurance is another name for permanent life insurance.
Universal life insurance is similar to whole life, but with additional flexibility. Both whole life and universal life consist of a death benefit which is paid out upon your death, as well as a cash component that you can tap while you’re alive. But while all of the components of a whole life policy are fixed, a universal life policy gives you the flexibility to adjust these components as your needs change over time—without cancelling your original policy and having to reapply.
Variable life insurance is a form of permanent life insurance which takes on an added role as an investment vehicle.
Like a regular whole life policy, variable life policies carry cash value. Unlike a whole life policy, though, the cash in a variable life policy can be invested in a fund managed by the life insurance company.
Like any investment, there is a risk associated with this investment, therefore rendering it, variable.
Variable-universal life insurance allows you to both invest the cash balance of your policy, and adjust the death benefit over time.
Term life insurance
Quick order of business: We advocate for term life insurance — which is the quickest life insurance to buy online, easiest to understand, and addresses most people’s needs to protect their loved ones in the event they die.
Term life insurance has two elements:
- The term — or amount of time — that you will be covered. For example, if you buy a 15-year policy, you are covered from the time of signing, and for the next 15 years (assuming you pay your premiums on time). Terms are typically 5, 10, or 30 years.
- Amount — or sum of money your loved ones will be paid should you pass. Typical sums are $100,000, $500,000 and $1 million.
A big benefit of term life insurance is that you can buy it easily, quickly and affordably online.
By contrast, whole life insurance has a cash value component, which grows at a low, but tax-deferred rate — and which you can borrow money against. Whole life insurance can be a good option, but can be complicated and more difficult to get a whole life insurance quote or policy online.
Should I buy term or whole life insurance?
Good question, and there is no wrong answer.
Many people prefer term life insurance because it is simple, easy to understand, and serves a single purpose: protecting their loved ones should the policy holder die.
Term life policies also tend to be much more affordable compared to whole life policies.
Whole life insurance policies, on the other hand, are more complicated than term life policies. You may decide that instead of a whole life policy, you prefer to have the flexibility of a money market account for your cash, or that you can earn a higher interest rate in a CD or in an index fund. While many people enjoy the lifetime duration of a whole life policy, that feature also makes it more expensive than a term life policy.
Long story short: Term life is the easiest, most affordable way to buy life insurance.
How much life insurance should a single mom have?
This is the most common question about life insurance.
Here is a quick-and-dirty formula: for most moms, multiply your income x3 to arrive at the amount of term life insurance you need.
For example, if you are 40-year old woman earning $50,000 per year at your job, buy a term policy with a $750,000 payout. Of course, there are many variables, including how much you have left on your mortgage, whether you want to fund your kids’ college, the age of your kids (the younger they are, the more insurance you may want to buy), whether you are responsible (or want to take responsibility for) an aged or disabled loved one.
A life insurance agent can help you find the right answer and the right policy. Use this life insurance calculator to understand how much life insurance you need, and qualify for. Items to consider:
- Your income — you likely want your kids or other heirs to enjoy a certain lifestyle by way of your life insurance.
- What do you want to pay for? If you want to make sure your kids' college tuition is paid in full, then consider that expense. If you want to pay for college and grad school and a down payment on a house and their wedding, then that is another sum.
- Debt. This may include credit card and personal debt that will need to be settled before your estate pays out your beneficiaries. If your debt is significant, factor that in first.
- How much can you afford? While you likely cannot afford not to buy life insurance, buying too much that you cannot afford only makes the life you are living today that much tougher.
Naming a life insurance beneficiary
In purchasing a life insurance policy, you must name a beneficiary, or the person who will receive your death benefit in the event that you die.
Most often, a married individuals choose their spouse as the beneficiary of their life insurance policy. This isn’t your only option, though: Anyone can be listed as a beneficiary.
Instead, create and name an estate, trust, and guardianship plan, which will receive the death benefit and use the proceeds to care for your child. This estate should designate guardians who will raise your child in the event of your death, and a conservator, who will manage the finances of your estate — including ongoing care of your child.
If you name your children as beneficiaries directly, your estate will wind up in probate court.
Affordable term life insurance for single moms
I just went through Bestow’s life insurance calculator that did a great job of summing up my financial and family situation.
As a general rule, you want to buy enough to pay off debt and support your dependents until they are through college.
One good measure is to multiply your current income by 10 (so if you earn $80,000 per year, you would need to buy $800,000 worth of life insurance).
How much debt do you have? How much do you make every year? Add these two numbers together. Boom! You have your life insurance number.
$200,000 outstanding mortgage
+$800,000 ($80,000 salary x 10 years)
In the above family, a $1 million term life insurance policy is advised.
Your plan should pay off your debts and replace your income for the years your children are still in school. It’s as easy as that.
Bestow life insurance review: Is Bestow any better than other insurers?
Here is what life insurance companies don’t want you to know: Life insurance is all pretty much the same, but packaged in different boxes.
Bestow and its competitors like Haven Life are all backed by reputable, highly rated older life insurance companies. Each one will give you a slightly different price and terms, and offer different experiences on their website, app or with an agent.
Bestow does stand out for two reasons:
- Bestow guarantees that its life insurance customers never go through a medical exam. This is pretty remarkable, but it is possible because Bestow vets applicants for health concerns that would otherwise warrant a medical exam.
- Bestow starts at $10 per month.
Bestow life insurance offers legitimate, quality, affordable coverage. The website is easy to use. Bestow stands out in the competitive field of life insurance with its no medical exam guarantee for premiums starting at $10 per month.
Other life insurance companies to consider
Sproutt is an online life insurance broker that promises to match you with the right life insurance provider and policy at the right price.
Sproutt has a number of insurance carrier clients that do offer no-exam life insurance. Depending on your medical history, you may qualify for no-exam life insurance.
Sproutt specializes in young, healthy people aged 45 and younger. Older adults and those with pre-existing conditions may not qualify.
Based on your age, lifestyle, type and sum of coverage, and any existing health conditions, prices for plans offered on Sproutt range from $10 to $90 per month.
Sproutt life insurance vs. Bestow
Sproutt is a quality life insurer, but unlike Bestow, will likely require a medical or lab exam. Sproutt promises a right-size policy and focuses on younger clients, which Bestow does not.
Haven Life may not (yet) be a household name in the life insurance sector, but its parent company MassMutual certainly is, as it is one of the largest and oldest insurers in the country.
A.M. Best, a global agency that rates financial services, gives Haven Life an A++ / superior rating.
Haven Life is designed for younger buyers who want fast, easy service. Unlike other insurers that rely on traditional processes of call centers, medical exams and interviews that take 6-8 weeks, Haven Life allows you to apply online and find out immediately if you’re approved for coverage — and in many cases to start life insurance coverage immediately.
With Haven Life, you can apply online and find out immediately if you’re approved for coverage.
I ran some numbers on this calculator, for a 20-year, $500,000 policy for a woman who is:
Age 45, in excellent health, non-smoker: $39.33 per month
Age 45, in average health, non-smoker: $72.71 per month
Age 35, in excellent health, non-smoker: $18.70 per month
Age 35, average health, non-smoker: $39.08 per month
Age 25, excellent health, non-smoker: $16.95 per month
Age 25, average health, non-smoker: $30.77 per month
Haven Life life insurance vs. Bestow life insurance
Haven Life and Bestow both offer quality policies from reputable, highly rate carriers that have been around for decades, easy-to-use websites and good customer service.
Bestow does stand out in the life insurance universe for two reasons:
- Bestow life insurance guarantees no medical exam— ever.
- Bestow offers 10, 15, 20, 25 and 30-year policies for premiums starting at $10/month. This is a great option if you are between jobs, recently laid off, starting a business, divorced or otherwise in a life situation where you need life insurance, quick.
Nationwide life insurance review
Nationwide is more than just another big company selling insurance and financial products. They are in the business of problem-solving, and they do it with personalized and friendly service.
You can access online tools, learn about the different types of life insurance, get answers to questions, or receive an online quote in under a minute. But what I really like about Nationwide is that you can talk to a specialist who will answer your questions. Since life insurance is about protecting your family, you want to feel confident, but you may not know all the answers. Nationwide’s specialists make sure you get the right coverage.
Nationwide life insurance vs. Bestow
Bestow and Nationwide are both highly reputable companies providing life insurance to consumers. But there are a few key differences between the two companies:
- Bestow is currently a licensed agent that only offers term life insurance policies through North American Company for Life and Health Insurance®, while Nationwide offers term life, whole life, universal life, and variable life policies.
- Bestow does not require a medical exam, while Nationwide does require such an exam.
Policygenius life insurance review
If you want to shop around and get additional quotes, check out Policygenius. Policygenius has changed the way people buy life insurance.
Policygenius lets you get quotes from multiple of insurance carriers at once, and compare them side-by-side. They work with most of the top carriers on the market.
One of the advantages of Policygenius is how easy it to compare policies. After you enter your information, Policygenius cranks out a list of quotes in a dynamic format that allows you to adjust your needs, rates and compare policies head-to-head.
Policygenius life insurance vs. Bestow
The primary difference between Bestow and Policygenius is that Bestow is is a licensed agent that offers term life insurance policies through North American Company for Life and Health Insurance®, while Policygenius is a life insurance marketplace. Policygenius allows you to compare rates and policies from many different life insurance companies. Bestow sells you life insurance directly.
Still not sure if you need life insurance?
You just don’t think you need life insurance
I know, we all think we are invincible, but the fact is there is always a possibility of something happening at any time. I’ve seen first-hand how families have struggled because they were not prepared for the unexpected.
You think your life insurance policy through work is enough
This is a common perception, and it may be true depending on your situation, but it’s important you understand the limitations of an employer policy. They are contingent on your employment with the company (no job = no insurance!). And you can’t lock in a rate with these policies, so the price is going to go up as you age, so you may be paying more in the long-run. And finally, they usually only cover 1-2x your salary. How long will that last your family? Is it enough?
You don’t totally understand how life insurance works and who gets the money
Life insurance can be really confusing and there are a lot of misperceptions. While it can cover burial expenses, as a mom, this is only part of what you need to be thinking about. You also need to consider how your family will survive without your income. I know it isn’t pleasant to think about, and that may be a reason why you have put it off, but you really shouldn’t.
You think life insurance is too expensive
Many people think it is expensive, but the truth is, it’s often very affordable. For example, if you are a 40-year non-smoking female old and in good health, you could obtain coverage for less than $20 per month. You can always increase your coverage later, but it’s best to lock in a rate while you are young because it does get more expensive as you age.
You’re uncomfortable paying for life insurance you may never need
I’ve heard this one before as well, and although we never want to waste money, this is one time I hope you waste money (nothing ever happens to you). However, on the off chance something does you need to be prepared, the consequences can be disastrous financially if you’re not prepared.
To help you feel more confident to get started thinking about the best way to protect you family, I’ve worked with Nationwide to answer some basic questions about life insurance.
Need medical help, or prescriptions from home? Learn about online medical care and pharmacies.
You let your life insurance policy lapse
If you did, your coverage will be or has been canceled and you have to start the whole application process over — and prices are likely to jump.
Frequently asked questions single moms have about life insurance
Life insurance can be overwhelming, confusing, and seem sleazy — how do you know if it is really worth it? Here are some common questions about life insurance:
What does life insurance cover?
Just like most term life insurance policies, life insurance offered by Bestow will help your family financially when you die. It is intended to provide help to your loved ones when they can’t rely on your salary or income any longer. The payout can be used to pay for your kids’ child care, college, daily care, to pay off any of your debts (including mortgage), or support their lives financially.
Is life insurance taxed?
No. This is a common question, and the answer is that life insurance offered by Bestow or any other life insurance is not taxable. What your beneficiaries receive is what they receive!
Is it worth paying for life insurance?
Statistically, you are unlikely to need life insurance, especially while your kids are young, before they graduate college. The value of life insurance really comes in the peace of mind it offers. For a few dollars each month you can buy a basic term life insurance policy you can sleep better and be less stressed about what would happen to your kids if you die.
Can you have multiple life insurance policies?
You can buy as many life insurance policies as you like. It is legal and possible to buy your own life insurance policy in addition to one you have through your work, or buy additional life insurance once you have a baby or go through divorce, for example.
Can you get life insurance on anyone?
You can also buy life insurance policies on other people — your kids’ dad, your ex-husband, your parents, etc. However, this process is trickier — you need to get the other person’s permission to buy life insurance on them, and you must be able to show proof that you will be impacted financially if they die.
Bottom line: Best life insurance policy for single mothers
At a minimum, it is best for single moms to buy a term life insurance policy that covers your kids until they are 21 or approximately graduate from college. Get a term life insurance quote now from Bestow >>