Life Insurance Lacking for Single Parents
A recent report from the 2011 Genworth Financial Life Jacket Study showed that single parents are the group least likely to carry life insurance. The report shows a staggering 69% of single parents with children living at home are without protection and many of them are wondering what is life insurance?
This statistic is about 36% below the national average of people without life insurance. About half of the US population does not carry life insurance and one of the groups who probably need it the most are not carrying it. Gregory Bucko, director of customer innovation at Genworth Financial companies is surprised by the findings. He believes single parents may be the group who needs life insurance more than anyone and they are the ones choosing not to have coverage.
According to the article "Most Single Parents Lack Life Insurance, Study Says" on FA-Mag.com, income levels did not seem to play a major role in the results. 79% of single men with children living at home and making less than $50,000 as well as those making more than $50,000 up to $250,000 were not carrying health insurance. Interestingly enough, 66% of women below $50,000 had no life insurance and 56% of women making over $250,000 carry no life insurance in the same category.
Gregory Fairchild, executive director of the Tayloe Murphy Center at the Darden School of Business, believes single parents are too busy and too scared to take a serious look at their life insurance needs. With 55% of married couples with children in the household carrying life insurance we see that being single makes a difference. Perhaps the monthly premium is concerning since there is only one income coming in to support the children.
Whatever the reason, life insurance companies and financial advisors have an opportunity here to educate this population of single parents and get them term life insurance quotes. This is invaluable since life insurance is a very important safety net for them to have for the protection of their children.