Single parents least likely to have life insurance
Mar 23, 2011
While Americans households in general are purchasing life insurance at a slower rate, a new study has found single parents across all income levels are the least likely to own a policy.
Single parents arguably have the most need for life insurance coverage, according to the source. However, the research project conducted in collaboration with the University of Virginia found that 69 percent of single parents with children in their household don't have a plan, compared with 45 percent of married parents with children in the household.
Researchers also found that a female single parent was considerably more likely to have life insurance coverage across all income levels. The study found that single fathers earning less than $50,000 annually who did not own their own home were nearly 20 percent less likely to be insured than single mothers in the same category.
Gregory Fairchild, a University of Virginia researcher, said financial insecurity causes some to put off a life insurance purchase.
"We find that many single parents are simply too busy - or even too scared - to properly evaluate their life insurance needs," he said.
Businessweek contributor Peter Coy reports that many people avoid purchasing life insurance because they don't want to face the thought of leaving loved ones behind. However, as a rule of thumb, buyers should purchase a policy worth five times their annual salary to be properly covered.