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 July 15, 2020

Important life insurance statistics you should know

life insurance stats

There are many misconceptions and myths around life insurance, but the importance of the coverage remains truer than ever. Let’s take a look at some insightful statistics on life insurance to help you better under the solutions coverage can help provide.

According to Life Happens, a nonprofit organization dedicated to educating Americans about life insurance, 66% of adults know they need life insurance yet only 57% have a policy.

Top reasons to buy life insurance

  1. To help replace lost income of the primary wage earner (37%)
  2. To cover burial and other final expenses (30%)
  3. To transfer wealth or leave an inheritance (28%)
  4. To help pay off the mortgage (27%)
  5. To help with business purposes (21%)

2019 Life Insurance Study Key Findings

  • 47% are “somewhat” or “much” more likely to buy life insurance with a simplified underwriting approach.
  • Of the 250 million U.S. adults, 85 million use social media to learn more about financial advisors.
  • About two-thirds of those using social media for finance-related topics are looking for information on products and services (62%) or reviews on financial professionals (61%).
  • When asked to identify the most valuable types of information from social media, 39% of consumers want a hint that explains how to save money and 38% want comments and referrals from other people.
  • 78% of consumers were “slightly” to “extremely” likely to purchase combination life products.
  • The top reason people buy a combination life product is anxiety over long-term care expenses potentially depleting their savings.
  • The top reason people do not buy a combination life product is because it’s too expensive.
  • Market penetration for life insurance is 57% for Americans.
  • The study shows product knowledge is a more significant barrier to ownership than perceived to be. This suggests reducing knowledge gaps may reduce ownership gaps.

2019 Insurance Barometer Study, Life Happens and LIMRA

Categories: Insurance, Life Insurance, Term Life Insurance, Whole Life Insurance

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