4 groups that could benefit from a life insurance review

By Maryalene LaPonsie on March 26th, 2013

According to Genworth Financial, not every demographic group benefits the same way from life insurance. However, a white paper from the insurance holding company identifies four consumer groups that are likely to need to coverage but less likely to have it.

4 groups with gaps in life insurance coverage

The four groups highlighted by Genworth Financial were chosen based upon data collected as part of the organization's 2012 LifeJacket Study. The study surveyed more than 25,000 adults in the United States and found the following groups were most prone to gaps in life insurance coverage.

  1. Parents with large families: Genworth notes parents with large families may skip life insurance as they work to make ends meet. However, affordable life insurance, particularly term life, is available and can provide a much-needed safety net for these families.
  2. Unmarried parents: Parents who are not married are another group likely to forego life insurance coverage. The study found 59 percent of unmarried mothers don't have insurance compared to 43 percent of those who are married. The gap is even larger for fathers with 69 percent of unmarried fathers going without coverage compared to 34 percent of married fathers. The lack of life insurance coverage among unmarried parents is concerning because, regardless of their marital status, these individuals still likely have children relying on their income for basic living expenses.
  3. Women: The discrepancy between coverage rates for married mothers and fathers is another area of concern. In releasing its white paper, Genworth says working wives are expected to earn more than their husbands in the next generation. Even for women who aren't working, life insurance can be important to pay for child care, housekeeping or other needs in the event of a loss.
  4. Those with common health concerns: Many of those with common health concerns, such as asthma or depression, don't bother shopping for life insurance quotes because they believe they are ineligible for coverage. While it is true life insurance rates can be lower for those in good health, Genworth says affordable life insurance can be found even by those with well-managed chronic conditions.

"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, in a statement. "We're working to close these gaps by educating consumers on the importance of a good insurance policy."

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