Moms Skimp on Insurance Coverage

Moms Skimp on Insurance Coverage


WATCH: More personal finance videos on TheStreet TV | More videos from Juliette Fairley

NEW YORK (MainStreet) — About 18% of Millennial mothers have life insurance coverage compared to 35% of fathers between the ages of 18 and 30 years old, according to a new study.

That may be because Millennial moms are not in the habit of working with financial advisors.

Also See: Insurance Field Guide -- When and Why to Buy

"You need an advisor that can understand the underwriting of a policy to make sure that reasonable expectations are set and the best company is chosen to fit with your specific health and medical situations," said C.J. Bowker, an independent life insurance broker with Aclaro Risk Management in Massachusetts.

A Life Ant survey found that only 11% of Millennials use financial advisors compared to 30% of Gen-Xers, 55% of Boomers and 48% for those over 65 years old.

Also See: Younger Millennials Value Meaning over Money

Although Millennials pay the least amount for life insurance coverage because of their age, the younger the mother, the less likely she is to be insured.

About 38% of Gen X mothers between the ages of 31 and 45 have life insurance coverage compared to 43% of mothers between the ages of 46 and 64.

Young people have the least expensive costs for life insurance coverage. "Insurance companies charge a cost of insurance (COI) to each policy," said Paul Siegert, president and CEO of the Insurance Studies Institute. "The COI increases each year with age. This is just a reality of how life insurance policies are designed."

Term life coverage can be purchased by most people under age 30 for less than $20 per month.