RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Building financial security as a single parent

down-arrow
Building financial security as a single parent
October 20, 2023

Table of Content

 

Of all the things that single parents wish to do for their children, creating a financially secure future tops the list. The task may seem difficult and daunting, but it is possible with prudent planning and execution. Here are a few steps to help you build financial security for your child.  

Buying life insurance

Life insurance protects your family in your absence. As a single parent, having a life cover becomes even more important for you because your child’s security is at stake. You can opt for a pure-term life insurance policy such as HDFC Life Click 2 Protect Super. It offers three plan options to choose from, which are Life, Life Plus and Life Goal, each offering multiple flexible features. For example, you can opt to receive death benefits in instalments. Aligning the payout dates with your child’s milestones can ensure that they have the means to keep proceeding toward their goals even in your absence.

You can also choose a savings-based insurance policy such as the HDFC Life Sanchay Plus. It allows you to choose from different plan options such as the Long-Term Income Option and the Guaranteed Maturity Option. The former offers income for a fixed term of 25 or 30 years and returns the premium at the end of the term. The latter, on the other hand, offers a guaranteed lumpsum maturity benefit at the end of the tenure. Regardless of the plan, life insurance must be an integral part of the financial plan of single parents.

Starting to save early

The Jamaican proverb, “Save money and money will save you” holds in every sense. To start saving regularly, draw up a monthly budget. With a clear overview of your wants and needs, you will be better able to cut down on your expenses and allocate more to savings. Along with saving for your known future expenses, it is essential to reserve money for emergencies. An emergency fund can make up for your inability to support your family during financially tough times.

Invest to multiply savings

Where you start saving and investing is as important as when you start saving. The purchasing power of your savings at home may reduce over time due to rising prices. To beat inflation, you must find investment avenues that will help your money grow. Insurance products like Unit Linked Insurance Plans (ULIPs) not only offer a life cover but also allow you to enjoy market-linked returns since they invest a part of your premium in a mix of equity and debt securities.

Prioritising debt repayments

You may feel the need to resort to a loan or credit at times to manage your child’s growing needs. But borrowing can be a double-edged sword. While it may have your back in times of need, missing Equated Monthly Instalments (EMIs), defaulting on repayments, etc. can you push deeper into debt. Thus, it is important to craft a robust repayment plan. By saving and investing regularly, you may be able to repay your debts faster. Additionally, you can adopt debt repayment strategies such as the snowball method or debt consolidation according to what suits your situation the best.

Planning your retirement

Being a single parent is manageable financially when you have a regular flow of income. However, the absence of a continuous income stream may make things difficult. Therefore, you must give due importance to retirement planning. And it is never too early to start. The earlier you start, the more you can accumulate, and the more comfortable life you can have with your child.  

Making your child financially smart

As a single parent, you are solely responsible for your child’s well-being. However, over-providing or over-protecting may make them too dependent on you. Instead, strike a balance and aim to make them financially savvy so that they can manage their finances themselves when needed.

To sum it up

The financially secure life you envision for your child can be a reality if you make wise financial moves well in time.

Related Article

ARN: ED/10/23/5352

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

How Rising Interest Rates Impact Your Investments—and What You Should Do About It

How Rising Interest Rates Impact Your Investments—and What You Should Do About It

How rising interest rates impact your investments and ways to adapt. Stay informed to make smarter financial decisions and protect your financial future.

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy

Baby Steps to a Secure Future: Financial Planning and Wealth Management

Essential financial planning and wealth management strategies for families. Secure your future and confidently navigate parenthood with these key insights.

Baby Steps to a Secure Future: Financial Planning and Wealth Management
Do Tax Saving and Investments Go Hand In Hand? Previous
Managing Your Finances in the Digital Age Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

HDFC Life Click 2 Protect Super (UIN No.: 101N145V02) is a Non-Linked, Non Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. Life Insurance Coverage is available in this product.

HDFC Life Sanchay Plus (UIN: 101N134V19) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product.

Popular Search

Popular Searches