Single mothers are more likely to own life insurance than women in general, but many are underinsured, according to a new study by LIMRA, a global life insurance research and consulting firm.
The study found almost two-thirds of single moms own life insurance compared to 57 percent of women in general. Among single moms, 37 percent own individual life insurance and 46 percent are covered by group life insurance. Among single mothers earning $50,000 or more, almost 90 percent own some type of life insurance with almost half owning individual policies.
Yet more than half of insured single mothers say they are underinsured, and only a fourth say they plan to purchase additional life insurance in the next year, according to LIMRA.
The most common reason for not increasing coverage is the need to focus on other priorities, including savings for their children's college educations and paying down debt, similar to reasons given by the general population.
"We were surprised by the level of life insurance ownership among single mothers," Nilufer Ahmed, senior research director of LIMRA Markets Research, said in a statement. "However, of those who are insured, only a third felt that their families would be able to cover expenses well into the future should they die."