At first glance, this study appears to be pointing out what most of us could have probably guessed. Single parents tend to have more financial difficulties than do parents who have a spouse or partner, because single parents are trying to get by on one income. In any case, there has now been a study that gathered enough data to prove what was previously assumed.
Many people feel that life insurance isn’t important, or is something that can be obtained “later”. If you are a parent who recently separated or divorced, then you may be struggling to figure out how to make ends meet on just one income, when before there were two incomes to help with bills and other expenses. When finances are tight, one has no choice but to prioritize what is most important to spend money on. Things like food, clothing, and school fees are obviously going to be more immediately important to pay for than a life insurance premium will be.
Thinking about life insurance can make a person uncomfortable. Most people don’t want to think about the possibility of their own demise. Life insurance policies require a person to select a beneficiary, and most people will select their spouse as the beneficiary. Single parents may have a multitude of reasons why they won’t want to choose their ex as their beneficiary. Choosing someone else can be problematic as well. Given all these factors, it’s no wonder most single parents do not have life insurance.
A 2011 study by Genworth Financial LifeJacket finds that 69% of single parents who had children living with them at home, and 59% of single parents who did not have their children living in their home, did not have life insurance. These percentages are higher than the percent of married couples who had children living with them, and who lacked life insurance. That number was 45%. This makes single parents the largest group in the study who did not have life insurance.
The amount of income made by a single parent didn’t make a significant difference on whether or not they had life insurance. 79% of men who were single parents, and who had children living in their home, didn’t have life insurance. This percentage was the same for the group who made less than $50,000 a year, and the group who was making between $50,000 and $250,000 a year.
66% of women who were single parents who made less than $50,000 a year did not have life insurance, either. Out of those who made $250,000 a year or more, 56% still did not have life insurance. The study is interesting because it shows that the group who would appear to have the most need for a life insurance policy is the same group that has the highest number of people who do not have it. Life insurance provides financial support for a person’s family after the person passes away. If there is only one parent, and that parent dies, the children are really going to need the benefits of a life insurance policy.
It’s also interesting because life insurance is so much easier to get approved for, and afford, than health insurance is. While financial limitations do play a factor in why a single parent hasn’t gotten life insurance, it doesn’t seem to be the only reason for the lack of insurance.
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