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Financial planning tips for single parents

Feb 07, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Secure your children’s financial future with our tips for single parents. Read on to know more.

Managing home and children can be quiet tiring and stressful, when you are a single parent. This means you are doing a balancing act while taking care of yourself, your children, and your finances. That’s why, you need your finances to be strong to manage it all alone. This leaves little room for mistakes and more scope for financial planning. It is more about following rules and less about number crunching. Here are some tips you can follow to enjoy smooth sailing as a single parent:

Plan your income

Your income source could be a job or a fixed deposit or a property on rent. Make an estimate of your future income and check whether it can meet your expenses. This can give you a fair idea whether you need to cut down on your expenses and/or take steps to increase your income.

Take stock of your finances

Make sure you spend only on what’s necessary. This can help you save more for your child’s future. Use credit cards in a wise manner and pay your dues on time. Else, they can charge a high interest for late payment.

It is best to avoid borrowing. If you must take a loan, try to repay it before you hit your 60s. This can protect your children from any claims lenders may make in the face of an unfortunate event. Also, prepayment helps you save interest on your loan.

Insure yourself

You also need to protect yourself against critical illnesses or a crippling injury. Neither you nor your children will need to pay for any expenses if tragedy strikes. It is critical to insure yourself. So, choose an insurance cover that can protect your children under all circumstances.

Aegon Life’s iTerm plan can give you mental peace. You need not worry about your child’s future in case something happens to you. The iTerm plan provides a cover of Rs 1 crore for a monthly premium as low as Rs 462. You can also enjoy extra coverage for critical illness, accidental death, and disability. All you need to do is pay a small fee.

Secure your child’s future

Children rely on you for all their needs, right from the cradle and until they find a job. Their future depends on your financial planning. Higher education can turn out to be a major expenditure, as it gets costly by the year. So, start planning for their education right from the time your children are in school, so that your investments will have enough time to grow.

Aegon Life’s iMaximize Plan can help you protect your child’s future. Under this plan, you get market-linked returns and insurance cover at the same time. This unit-linked insurance product can help your investment grow with time. In the event of death, your children get a sum assured and all the future premiums get cancelled. Yet, they will enjoy all the benefits until the end of the policy term.

Retirement planning

First, understand the importance of retirement planning. With age, your earning ability will decline, while your expenses will keep rising. Your children may start their own family life and you cannot rely on them to meet all your expenses such as your medical bills, hospitalization fees, travel plans and more. So, you need to save some money for retirement with a retirement plan. This plan can help you maintain a good lifestyle and manage all your expenses in your old age. Plus, a retirement plan will give you a monthly income to meet your daily expenses.

To sum up, life as a single parent can be challenging. But, proper financial planning can help you beat all the challenges one by one. So, start planning today!

To know about AegonLife’s life insurance products like term insurance plans, visit our home page.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

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Life Insurance Plan with 4 Options to Choose from

  • Life Plan
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  • Life & Health Plan (10 Critical Illnesses covered)
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