Single Parents and Life Insurance

Genworth Financial just released a study finding that too many Americans who need life insurance coverage are uninsured, putting their families and futures at risk. According to the 2011 Genworth Financial LifeJacket Study, single parents across all income levels with children living at home have the least insurance for their needs, potentially leaving their children with few or no options when faced with an unexpected death. Listen to Tracy Basden’s story if you want to see what happens to the children in these situations.

The research project found that 69% of single parents with children living at home constitute the highest percentage of uninsured Americans compared with married parents with children in the home (45%).

The Genworth study also found that only 49% of the U.S. adult population has some type of life insurance coverage. Single people, regardless of whether or not they have children, are 36% below the national level for life insurance coverage, according to the study.

According to the survey, single male parents with children living in the household are more uninsured than single females at every income level. Again, Tracy’s story is a poignant example of this.

Here are further findings.

79% of unmarried men who are not homeowners, having children in the household and earning an income of less than $50,000 per year are uninsured, compared with 66% of women in the same category.

The percentages do not drop dramatically as income increases. In fact, 79% of unmarried men who are not homeowners having children in the household making between $50,000-250,000 per year are uninsured.

More than half (56%) of unmarried women who are not homeowners having children in the household but making more than $250,000 are uninsured.

The level of uninsured households tends to increase as the number of children increases, particularly at the lower income levels. The percentage drastically increases in instances of five or more children.

The study stated that the insurance industry has an opportunity to better educate consumers and give them the tools and resources to help protect themselves and their families. Sounds like they are talking about the LIFE Foundation. This is exactly what we do: Educate consumers about what life and health insurance products do, not just what they are, and motivate them to make the decision to protect themselves and their families.

Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens

by Marvin H. Feldman

Marvin H. Feldman, CLU, ChFC, RFC, is president of the Feldman Financial Group in Palm Harbor, Fla., and president and CEO of Life Happens. He is a 41-year Million Dollar Round Table member and was the 2002 president. He is a 33-year member of the MDRT Top of the Table and a past Top of the Table chairman. He also is the recipient of the 2011 John Newton Russell award, the highest honor bestowed on an individual by the insurance industry.

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