Women and Unmarried Parents Suffer from Lack of Life Insurance

life insurance policiesLiving without life insurance is something many people do every day, despite the financial risks a lack of coverage poses to their families. A study released this week by Genworth Financial revealed that while anyone can be guilty of bypassing this important coverage, there are four key consumer groups that face the largest gaps when it comes to life insurance policies: unmarried parents, large families, women and individuals with common health conditions.

For these groups in particular, it is recommended that life insurance coverage become a priority sooner than later.

4 Consumer Groups Lacking Life Insurance Policies

The new Genworth Financial report, released today, revealed that the primary goal of life insurance policies is to provide financial security, not so much for the consumer purchasing coverage, but the family that would be left behind in the event of the consumer’s death.

However, it seems that Americans who opt out of purchasing coverage, or are underinsured, are those who have fewer financial resources to support their families if they were to pass away today.

Specifically, the white paper, based on key insights from Genworth’s 2012 LifeJacketSM Study, identified four key consumer groups lacking coverage from life insurance policies:

1. Large families. The paper revealed that low incomes and busy schedules are the reason many large families opt out of life insurance coverage. Individuals in this group deem life insurance to be an expensive luxury they can go without.

2. Unmarried parents. Genworth Financial found that 59 percent of unmarried women go without life insurance policies, compared to the 43 percent who are married without coverage. For men, 69 percent of unmarried fathers are uninsured, compared to 34 percent of married fathers, showing that unmarried parents are significantly less likely to have life insurance than their married counterparts.

3. Women. The study found that fewer women have life insurance than men. In fact, 43 percent of married mothers lack coverage, compared to 34 percent of married fathers.

4. Consumers with common health concerns. Many people choose not to purchase coverage when they have common health issues like asthma or depression. They believe these ailments are barriers to receiving preferred rates on life insurance policies when, in fact, coverage can still be affordable.

Overcoming Life Insurance Financial Fears

The Genworth Financial study noted the importance for individuals, specifically in these key consumer groups, to acquire coverage despite fears that they can’t afford life insurance.

“Consumers often believe life insurance costs nearly three times its actual price, and this is a major contributor to the large coverage gap we’re seeing in these four groups,” said Brian Bulakites, vice president and national sales manager for life insurance at Genworth. “We’re working to close these gaps by educating consumers on the importance of a good insurance policy.”

A separate study conducted by the LIFE Foundation and LIMRA revealed that the cost of a $250,000 term life insurance policy could cost as low as $150 per year, showing that coverage is more affordable than many consumers assume.

By obtaining a life insurance quote, consumers can gauge the real-life cost of coverage for them. And once they acquire coverage, they can finally rest assured that they are providing the financial resources necessary to support their loved ones after death.