Only 4 in 10 Single Mothers Have Life Insurance — and That’s a Problem

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Most single moms don’t have life insurance. Read on to see how you can secure affordable coverage. 

Being a single parent is challenging on multiple levels. Not only are you solely responsible for your child’s care, but you may have to juggle work and parenting responsibilities without any sort of help or backup.

The number of single-mother households in the U.S. has increased by 40% since 1980, according to the Census Bureau. But only 41% of single mothers have life insurance, which is a lower percentage than the general population, according to data from LIMRA.

Of course, a big reason so many single moms are going without life insurance likely boils down to the cost. Thanks to the ever-present gender pay gap, women are still generally earning less money than their male counterparts. And it’s easy to see how lower incomes might force women — especially single mothers — to have to cut corners.

But if you’re a single mother, it’s extremely important that you put life insurance in place. Without coverage, it’s hard to say what might happen to your child or children in your absence. And if cost has been a barrier to securing life insurance, there’s one option worth looking at.

A more affordable option

Life insurance comes in different varieties. If you buy whole life insurance, you’ll be covered on a permanent basis, and your policy will, in time, accumulate a cash value. That cash value is something you might be able to tap or borrow against down the line.

But despite that benefit, whole life insurance presents a really big challenge — it’s extremely expensive. Term life insurance, on the other hand, tends to come with much lower premium costs. And there’s a reason for that.

Term life insurance won’t cover you on a permanent basis like whole life insurance. Rather, you’ll get coverage for a specific number of years. You also won’t see your term life insurance policy accumulate a cash value. If you don’t pass away while your coverage is in place, you won’t get a payout from your insurance company.

Still, if you’re a single mother on a tight budget, term life insurance could not only be a better choice, but your only financially feasible choice. And you’re better off buying some amount of coverage than not having any.

What’s more, you may find that term life insurance more than meets your needs. Let’s say you have a child who’s 5 years old, and you’re looking for a way to protect them through young adulthood. If you were to buy a 20-year term life insurance policy, you’d get coverage through your child’s 25th birthday. At that point, it’s reasonable to assume that they’d be able to go out and get a full-time job to be self-sufficient.

Don’t go without coverage

As a single parent, you may be used to having to cover 100% of the cost of raising a child. But if you were to pass away, it means your child risks losing 100% of their financial support. And so it’s really important to put a life insurance policy in place if you have a dependent who doesn’t have another parent to rely on.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

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