Extended Family

Article

Beyond the family with two parents and 2.5 kids, there is another America:

About 9 percent of U.S. of households are headed by single parents. Of these 13 million one-parent families, about 20 percent are single-father households.
Close to 8 percent — about 6 million — of all children in the U.S. live in homes with a grandparent.
In Census 2000, 5.2 million households — or about 4.7 percent — are classified as unmarried-partner households.
About 33 percent of lesbian couples and 22 percent of gay male couples have children.
About 1.3 percent of U.S. families are in the military.

Beyond the America of the typical family, there is another insurance world, too — one that appears to be in need of assistance in understanding insurance and the need for documentation. According to a survey by the National Association of Insurance Commissioners, America’s single parents, domestic partners, grandparents raising children and members of the military have several misperceptions about the insurance products available to them. The NAIC’s research found, for example:

32 percent of members of the military are unaware whether their homeowners policy limits coverage of unoccupied homes.
15 percent of single parents report their children did not have health insurance.
Only 37 percent of single parents carry life insurance for the benefit of their child.
49 percent of domestic partners have no formal documentation providing evidence of their relationship, which is important for providing benefits to members of a family or household.
52 percent of grandparents raising grandchildren have no proof to document their role in raising their grandchildren.
57 percent of grandparents raising a teenager do not have their grandchild listed as a secondary driver on their auto policy.
35 percent of grandparents raising a teenager say their homeowners policy does not cover their grandchild’s possessions.

The NAIC is using the findings of its research to expand its InsureU consumer education program for these specific groups: domestic partners, single parents, grandparents raising grandchildren and members of the military.

“In order to help us develop relevant tips and information, we first needed to find out where the information gaps occur,” says NAIC Executive Vice President and CEO Catherine J. Weatherford. “Our research identified many misperceptions and misunderstandings about insurance among these consumer groups.”

The expanded topics build on the four life situations already available on the InsureU site: young singles, young families, established families and seniors.

While the state regulators do their part to fill the information gaps with these constituents, enterprising agents and brokers can help fill the insurance gaps of these American families that may not fit the profile of the stereotypical American family but fit the profile of insureds in need.