Life Insurance

Among life insurance owners, 22 percent say they do not have enough coverage.* The percentage of Americans with a life insurance need-gap rose sharply in 2020, and has not ebbed since the generally accepted end of the COVID-19 pandemic in 2022.*

• Non-owners who say that they need life insurance represent 30% of all respondents; little change since 2022.*
• The percentage of Americans with a life insurance need-gap rose sharply in 2020 and has remained elevated since the height of the COVID-19 pandemic in early 2021.*
• Women (46%) are less likely than men (57%) to have life insurance. This self-reported gender gap has persisted over the 14 years of the Barometer study and the 11-point difference matches the largest it has ever been.*
• Black and Hispanic Americans report higher need for life insurance protection than other groups.
• Overall, self-reported life insurance ownership has remained stable with 51% reporting they own at least one policy.*
• The majority of Gen Z has now aged into the Barometer Study sample and are showing interest in life insurance. While self-reported ownership remains low at 36%, half report a need-gap (49%), which suggests an early awareness for life insurance products.*
• The perceived cost is cited as the top barrier to purchasing life insurance. However, about three quarters (72%) overestimated the true cost of a basic term life insurance policy. Year after year, consumers greatly overestimate the cost of life insurance; notably over half of Gen Z and Millennials combined overestimate the cost at over three times its actual price.*
• Over a quarter of the three younger generations (Gen Z, Millennials, and Gen X) cite “lack of knowledge about life insurance products” as a reason that they do not own it.*
• Of those earning $50,000 to $149,999 per year, 39% say they need/need more life insurance. The high level of need combined with the large number of households in this segment suggests interest from 48 million middle-income consumers.*

*2024 Insurance Barometer Study, LIMRA and Life Happens

Uses for Life Insurance

Many consumers realize that life insurance is used to pay for funeral expenses and/or leave a legacy through death benefit to your designated beneficiaries. Did you know life insurance also has additional living benefits?

Depending on the carrier and product, life insurance also can be used to:

• Pay outstanding debts or large expenses, such as mortgages and college loans
• Take an income tax-free loan from the cash value of the life insurance policy
• Provide a cash flow in retirement
• Cover healthcare costs related to a chronic or terminal illness
• Donate to a charitable organization
• Pay taxes that may be due on your estate

Consumer Resources

These materials are provided by Life Happens. Life Happens is a non-profit organization dedicated to helping Americans take personal financial responsibility through the ownership of life insurance and related products, including disability and long-term care insurance.

Life Happens also seeks to remind people of the important role insurance professionals perform in helping families, businesses, and individuals find the insurance products that best fit their needs. Life Happens does not endorse any product, company or insurance advisor. Its only interest is seeing that consumers get the coverage they need to protect themselves and their loved ones.

• Calculate Your Needs – Life Insurance Calculator (online calculator/form)
• Life Happens: Life Is for Living (Video)
• Life Happens: Chich Family: It’s About Family (Video)

This material is intended for both educational purposes and to promote interest in the subject matter. It does not address any individual’s specific situation and is not to serve as the basis for any purchasing decision. The material is based on the information available to me and, while deemed accurate, is not guaranteed. Numerical examples, if any, are only illustrative. Guarantees, when applicable, are backed by the financial strength and claims-paying ability of the issuing carrier. For additional information, please contact our agency.