Get insured
Insurance has to be
at the top of the to-do list of creating a safety net. “Insurance is very
critical for a single parent considering that there is only one earning member
in case of any unforeseen circumstances,” said Kapil Mehta, managing director,
SecureNow Insurance Broker Pvt. Ltd.
In terms of life
insurance, the best option is to choose a term plan as it gives more cover at a
lesser cost. Moreover, various versions of term plans are now available that
give the policyholder flexible options such as buying the policy online and a
staggered or lump sum payment to the beneficiary.
The general rule is
to have a sum assured that is 10 times your annual income—this applies to
single parents as well. If you have liabilities such as a home loan, include
the loan amount in the term plan. Doing this has distinct benefits—if you die,
the insurer pays the remaining loan amount; your dependants are spared the
burden; and they get to retain the house.
The next item on the
list is health insurance—again a must-have. “If you are living in a metro like
Mumbai, you should have at least Rs.10 lakh health insurance cover considering
that the medical expenses are higher at such locations. If you live in a
non-metro city, Rs.5 lakh cover will work,” said Mehta.
Medical costs are
only climbing, so it makes sense to take a health cover for your child too.
“Most insurers offer cover for a child till she turns 25 or starts earning,
whichever is earlier. Go for a floater plan, as it will cover both you and your
child,” said Rahul Aggarwal, chief executive officer, Optima Insurance Brokers
Pvt. Ltd.
Along with a health
insurance policy Health Insuranceconsultants in Delhi, one must also take a critical illness cover of the
same amount because as a single parent you don’t have any back up to rely on.
The other layer of insurance that you need is
that of a disability cover. “You can take an accident disability rider. This
generally costs 10% of the term plan,” said Mehta.
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