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- Should single wage earners purchase life insurance?
- April 27th, 2011 5:05 PM
Those who may be the least inclined to have life insurance could be in the position to benefit the most from the financial security a policy can offer.
A new report “Basic Economic Security Tables for the United States” on family economic security released by the non-profit organization Wider Opportunities for Women (WOW) details the challenges that many Americans face in covering their basic expenses and what type of income it would take to save for their futures.
Single workers need $30,012 a year – nearly twice the federal minimum wage – to cover basic expenses. Single parents require nearly twice the income, $57,756, to support two children, according to information uncovered in the report.
“I think these workers and these families clearly are at a greater risk for their ability to obtain these kinds of benefits – disability, life insurance, health insurance,” says Joan Kuriansky, executive director of WOW.
Employment on the lower end of the spectrum often offers little access to the benefits a worker needs to secure their financial future and that of their families. Unskilled labor comes in the form of dead end jobs that offer little if any chance for economic or professional advancement.
In January 2012, LIMRA reported that in the last few decades a growing segment of people who should be concerned with buying adequate life insurance coverage is singles and the newly divorced. Cheryl Retzloff, senior research director for LIMRA Markets Research said in a statement: “Only 26 percent of single people recall having an opportunity to buy life insurance (compared to 74 percent of married people).” LIMRA also found that singles, when presented with the opportunity to buy life insurance, were almost as likely to buy life insurance as their married counterparts (51 percent versus 58 percent).
Another growing, but untapped market is single mothers. LIMRA revealed in an earlier study that one third of single mothers who were the primary breadwinners in their respective households did not have life insurance. Those who did have life insurance coverage were severely underinsured. This combined with the fact that two thirds of single mothers felt that their families could not cover living expenses for more than two months if something happened to them underlined the need for suitable life insurance coverage.
In today’s economy more and more people are finding themselves in a position where they are not earning enough money. That can put the financial future of their families at risk. Kuriansky says WOW developed the study to help individuals understand what they need financially to survive so they can best plan a strategy to conquer their short and long term financial needs.Pages: 1 2
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