Life Insurance Facts and Statistics

According to a LIMRA and Life Happens 2024 Insurance Barometer Study, more than half of Americans (51%) have an active life insurance policy. That means a significant amount of people go without it, often citing cost as a primary barrier. Yet, purchasing life insurance can provide financial security and peace of mind for loved ones during uncertain times.

A closer look at life insurance statistics can help you appreciate consumers’ financial concerns around purchasing a policy, gaps in coverage and opportunities in the industry. To explore these insights further, MoneyGeek analyzed data from the 2024 survey above to provide insights into current life insurance ownership trends.

The life insurance need-gap represents the percentage of adults who feel they need life insurance or additional coverage. It has remained high since the COVID-19 pandemic, reaching a record-breaking 42% in 2024, likely due to economic conditions and changing life stages among younger generations.

Although the pandemic raised awareness, many Millennials and Gen Z adults now entering key life stages feel unable to afford coverage. Social trends — such as getting married and starting families later in life — may also delay life insurance purchases, especially as inflation and higher living costs make it harder for many to prioritize coverage.

Source: 2024 Insurance Barometer Study

According to the 2023 Insurance Barometer study by LIMRA and Life Happens, 60% of those who buy life insurance do so to cover burial and final expenses. Other common reasons include transferring wealth or leaving an inheritance (38%) and receiving coverage through employer benefits (33%).

For those without life insurance, cost remains the most significant barrier, with 42% citing it as too expensive. Another 28% prioritize other financial needs, while 23% are unsure about how much coverage they need or which type to purchase. This uncertainty and the perception of high costs can cause many to delay or avoid buying life insurance, potentially leaving their families without financial protection.

In 2024, 51% of American adults reported having life insurance. LIMRA's new estimate shows an even higher rate of 59%, as it includes consumer perspectives along with data from industry and government sources. Despite these figures, life insurance ownership has steadily declined since 2011, when it peaked at 63%, mainly due to reduced awareness of employer-provided coverage.

Source: 2024 Insurance Barometer Study

Of those with life insurance, 55% have individual coverage purchased in the retail market, while 26% rely on employer-provided coverage. An additional 19% have both individual and workplace life insurance.

Awareness of workplace life insurance has declined over the past decade, even though it remains a valuable benefit. Factors like fewer benefits fairs due to remote work and more passive enrollment processes have contributed to this trend. As a result, many employees may not realize they already have life insurance through their employer.

Source: 2024 Insurance Barometer Study

Women are less likely than men to own life insurance, with 46% of women insured compared to 57% of men in 2024. This 11-point difference is the largest recorded in the 14-year history of the Insurance Barometer Study. The gap is not due to a lack of awareness — 45% of women (about 56 million) report having a coverage gap, and nearly 37% plan to purchase life insurance in 2024. Younger women, in particular, are increasingly focused on addressing this need.

Source: 2024 Insurance Barometer Study

Life insurance ownership varies by generation, with older generations more likely to hold policies. Baby Boomers have the highest ownership rate at 57%, followed by Gen X at 55% and Millennials at 50%. Gen Z has the lowest ownership rate, with only 36% holding life insurance.

As Baby Boomers age, their ownership rates are expected to decline. Meanwhile, younger generations, such as Millennials and Gen Z, are anticipated to see growth in life insurance needs as they reach key life stages.

Source: 2024 Insurance Barometer Study

When it comes to race and ethnicity, 52% of Asian and white respondents reported having life insurance, reflecting an even ownership rate between these groups. Hispanic adults report lower ownership, with only 43% insured.

Black Americans have the highest life insurance ownership at 58%, consistent with historic trends. However, a significant coverage gap remains, with 49% indicating they need more coverage compared to 37% of white Americans. Despite higher ownership rates, many in the Black community feel underinsured.

Source: 2024 Insurance Barometer Study

Higher-income households are more likely to have life insurance coverage than lower-income groups. Among households earning $150,000 or more, 71% report having life insurance. For those in the middle-income range ($50,000 to $149,999), ownership stands at 55%. In contrast, only 31% of households earning less than $50,000 have life insurance.

Source: 2024 Insurance Barometer Study

Total life insurance benefits and claims have grown over recent years. According to the latest report by the Insurance Information Institute, total life insurance benefits and claims reached approximately $832 billion in 2023, up from $813 billion in 2022. This total includes payments for various types of claims, including death benefits, annuity benefits, disability payouts and other policyholder claims.

In 2023, the largest payout category was for surrender benefits and early terminations, such as cash withdrawals from life insurance policies, which totaled $416.2 billion. Disability, accident and health benefits followed at $154 billion, with annuity benefits amounting to $101 billion.

Source: Insurance Information Institute

According to LIMRA’s preliminary U.S. Life Insurance Sales Survey, the U.S. life insurance industry continues to grow, increasing 1% from the previous year, with new annualized premiums reaching $15.6 billion in 2023. This marked the third consecutive year of record-setting premiums. Growth was widespread, with 60% of companies reporting sales increases, including half of the top 10 carriers. The number of policies sold also rose by 4%.

In the fourth quarter of 2023, total life insurance premiums increased 4% to $4.2 billion, driven primarily by strong term life sales. Policy count also grew by 2%.

Below is a breakdown of sales by insurance type in 2023:

According to the National Association of Insurance Companies, as of 2023, New York Life Group holds the top position in the U.S. life insurance market with a 6.86% share, generating $13.3 billion in direct premiums. Northwestern Mutual follows closely with a 6.74% share and $13.1 billion in premiums, while Metropolitan Group ranks third with a 6.34% share and $12.3 billion in premiums.

Other major players include Prudential of America Group and MassMutual Life Insurance Group, with market shares of 5.64% and 4.75%, respectively. Collectively, these top five companies account for over 30% of the market, highlighting their significant presence in the U.S. life insurance industry.

Social media is increasingly important in how consumers research and purchase life insurance. In 2024, 59% of Americans reported using social media to gather information on financial and insurance topics, including finding advisors, exploring products and engaging with related content. YouTube and Facebook are the most popular platforms for this purpose, particularly among younger adults.

Gen Z and Millennials are the most frequent social media users for financial research. About 84% of Gen Z and 75% of Millennials use platforms like TikTok, YouTube and Instagram to learn about financial products and services, including life insurance.

This shift toward online and social media channels reflects changing consumer behaviors, as younger generations increasingly rely on digital platforms for financial decision-making.

Understanding life insurance statistics can offer valuable insights into the industry and opportunities within the U.S. market. MoneyGeek has compiled the most commonly asked questions on this topic to provide more information.

Life insurance is a broad topic, and online resources can provide information in addition to statistics. MoneyGeek included a list of pages that may broaden your understanding of this financial product and other related areas.

• Average Cost of Life Insurance: Learn what impacts life insurance rates and how factors like age, health and policy type determine your premium costs.
• Best Life Insurance Companies: Compare top-rated life insurance providers to help you choose a company that offers the best policy options, rates and customer service.
• Cheapest Life Insurance Companies: Find affordable life insurance providers and tips on securing low-cost policies without sacrificing coverage.
• How Does Life Insurance Work?: Understand the basics of life insurance, including how policies work, selecting beneficiaries and choosing the right life insurance coverage.
• How Many Americans Have Enough Life Insurance Coverage?: The need-gap in life insurance is undeniable. Read about common misconceptions regarding this financial product and why people choose not to purchase a policy.
• How to Compare Life Insurance Policies: Many life insurance providers and products are in the market for you to determine the best fit. MoneyGeek guides you through the selection process to ensure you get the best deal possible.
• Is Life Insurance Worth It?: Most say life insurance is a worthy investment, but do you need it? Use this page to weigh the pros and cons.
• Life Insurance Guide for Veterans and Active Military: Discover life insurance options tailored to the unique needs of military servicemembers and veterans.
• Managing Federal Taxes on Life Insurance Proceeds: Understand the tax implications of life insurance proceeds to better manage financial planning and benefits for your beneficiaries.
• Term vs. Whole Life Insurance: Life insurance policies come in different forms. Understand the difference between term life insurance and whole life insurance, a type of permanent life plan, to determine which is best for you.
• Universal Life Insurance vs. Whole Life Insurance: What’s the Difference and Which One Should You Get?: If you decide to get permanent life insurance, which one should you purchase? Use this page to understand the differences between universal and whole life insurance.
• What Are the Different Types of Life Insurance?: Explore various life insurance types, including term, whole and universal life, to find the policy that best meets your financial goals.