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Life insurance provides financial protection to your loved ones in the family in the unfortunate event of your demise. If you find yourself wondering how your family will survive in your absence, or how they would have to compromise on their life goals and lifestyle, then term insurance is a way out.

Uncertainty is a source of major anxiety for most of us, and with the fragility of human life, the anxiety multiplies. We cannot control how the universe works, but we can assuage our worries and apprehensions by securing financially against the worst-case scenarios. Therefore, we seek solace by investing in term insurance that safeguards the financial future of loved ones in our absence, or in a retirement savings plan that brings you guaranteed income in your golden years, or other immediate annuity plans that can support you when you are older and retired. In our financial plans, term insurance plans are key. Life insurance is an important piece of every family’s financial protection plan, but it is especially important for single parents. If you are raising a kid on your own, the risks are high with respect to the fragility of human life.

A pure insurance product like the term insurance plans can help ensure financial protection for your kid even in your absence.

How much term insurance is needed?
Generally, even in the most typical family structures and scenarios, it is advised as a rule of thumb to ensure that your term insurance cover should be at least 10 times your annual income if your beneficiaries are to maintain their standard of living. The life cover you decide on should suffice to help your family maintain the standard of living you would have provided for them always. Moving on to a more specific scenario: how does this amount change when you are a single parent?

• Here's a rule of thumb: think about your kids’ financial needs to decide how much life insurance to buy. Your kid’s needs would largely depend on the age and stage of life s/he is at. It would also depend upon the number of kids you have - the number of dependents will determine the amount that is to be provided to them. The specific needs could be - education through school, expenses in the long-haul like the cost of higher education, career development etc. 
• Also, account for any assets you own and adjust for any debts, obligations and mortgage to be paid off, to finally arrive at a regular stream of income to provide for utilities and necessary expenses. . Thus, always ensure that the coverage is large enough to meet all your existing liabilities.

While deciding on buying a term policy, you must check that the policy covers at least a reasonable amount of your annual income for a long duration in the coming time.

Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
IRDAI Registration Number 117. CI No: U66010KA2001PLC028883. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale.
The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
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