Protection for Single Parents: What you need to consider


Protection for Single Parents: What you need to consider

Single parents have plenty to worry about, especially when it comes to finances. We asked two of our own to share their thoughts on how you can help these clients. 

 

Teresa Curreri, Sr. LTC Sales Consultant

Even though I’m a healthy 41-year-old with a good job, I have a lot of worries when it comes to finances. As a single parent raising a 13-year-old daughter and managing a single-income household, my biggest concerns are: 

  1. Cash Flow, Cash Flow, Cash Flow –

    It’s important to keep expenses as low as possible so we can be prepared for any emergency, like a car repair or plumbing issue. 
  2. Saving for the Future –

    It’s tough to balance saving for my daughter’s college education while also saving for my own retirement. 
  3. Extended Illness –

    If I get sick or hurt today, how will I pay my bills and care for my daughter? If I need long-term care in the future, who will take care of me and how will I cover the expenses? 
  4. Unexpected Death –

    If I die tomorrow, I want to be sure my daughter will be OK. No one wants to leave a legacy of medical bills or debt. 

 

As an insurance professional, I know women tend to worry about the future more than men. And, as expected, single mothers worry more than average women. 

Life, disability and long-term care insurance can help alleviate some of these worries, but the costs CANNOT be constricting to cash flow or savings – those things are still just as important! Keep that in mind when you’re talking to your clients who are single parents.

 

Gina Shaffer, Sr. Internal Wholesaler 

I have to agree with Teresa – cash flow, cash flow, cash flow! Money is always on the brain. We don’t live near my family or my son’s father, so I’ve protected us with two different approaches: 

  1. Plan for the worst – 

    It may sound morbid, but single parents especially need to make sure they have their ducks in a row. When I travel, my life insurance, will and trust papers are all in my bag. If anything happens to me, there’s a plan in place to protect my son. 
  2. Build a village – 

    If your clients are like me and don’t have family around, it can be especially difficult to ask for help. A few years ago, I was on disability and had to reach out to people I knew to help with my care. It wasn’t easy, but my son could only do so much to help me, and I didn’t want to burden him. 

 

As an advisor of a single parent, you should ask a lot of questions. The first: Have they updated the beneficiary on their life insurance? Chances are, it’s still their former spouse, and most people don’t realize they should NOT make their child the beneficiary. Instead, they could establish a trust and designate a trustee to ensure their child’s financial needs are met.

If something did happen to your client, are YOU prepared to talk to their children and other loved ones about the plans in place? Your role becomes even more important in this situation. Make sure you’re the partner they can depend on. 

 

About the Authors

Teresa Curreri is a senior LTC consultant partnering with agents to protect their clients and family from the uncertainty of tomorrow. She’s is a licensed life and health producer, and she’s been focusing on LTC for 15 years.  

Gina Shaffer is a Senior Internal Wholesaler with more than 30 years of experience in the life insurance industry. She takes an extreme amount of pride in creating an impact and partnering with agents, their staff and their clients.