Risk Tolerance of Single Parents and Ownership of Term and of Cash-Value Life Insurance

What is it about?

Single parents with children under the age of 18 need to think about life insurance both for providing for their children, and as an alternative investment. We found that as risk tolerance increases, single parents are more likely to have term life insurance, which provides pure protection in the case of death, but less likely to have cash value life insurance, which is a common investment alternative.

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Photo by Sai De Silva on Unsplash

Photo by Sai De Silva on Unsplash

Why is it important?

In terms of financial education, stressing the risk reduction aspects of term life insurance may be effective, especially for parents with low risk tolerance/