Life insurance is more important to single mothers than women in general, but they still aren't buying enough coverage, according to a LIMRA study.

Nearly two-thirds of working single mothers own life insurance, the study found, higher than the ownership level for all women (57 percent).

"We were surprised by the level of life insurance ownership among single mothers," says Nilufer Ahmed, senior research director, LIMRA Markets Research. "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. With about 10 million U.S. single mothers with children under the age of 18 living with them, there is a significant opportunity for companies to help these families obtain adequate levels of life insurance."

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The idea that single mothers are likely young and never married is a myth: U.S. Census Bureau data indicate more than 8 in 10 single mothers are at least 25 years old, and more than half were previously married. Additionally, while many do earn low incomes, a fourth earn incomes of at least $50,000 annually placing them solidly in the middle class.

According to the study, almost two-thirds of single mothers own some type of life insurance—37 percent own individual life insurance, and 46 percent are covered by group life insurance. That number increases with the more income they earn. Almost 90 percent of single mothers who earned $50,000 or more own life insurance.

More than half of insured single mothers realize that they are underinsured and should have more coverage, LIMRA found. However, only a fourth say they are likely to purchase additional life insurance in the next 12 months.

The reason? They have other financial priorities including paying down debt and saving for their children's college educations.

Insurance companies can help calm their financial stress by indicating to them there are affordable policies for all levels of income, LIMRA suggests. Most of single mothers (7 in 10) believe the fees involved in working with financial professionals are too high to be affordable.

The women indicate meeting face-to-face is by far the most preferred way to purchase life insurance. In fact, of the single mothers with life insurance, 8 in 10 purchased their policies through face-to-face meetings with insurance agents or brokers, or with other financial professionals. No other purchase method comes close. 

"Companies and financial professionals should provide some guidelines about the fees involved in meeting prospects face-to-face," Ahmed says. "It is highly probable that single mothers are overestimating these costs, and therefore are not even approaching financial advisers."

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