Life Insurance Statistics by State for 2023
Are you looking for key life insurance facts statistics by state 2023?
Well…then you have come to the right place.
In this post we will show the amount of life insurance coverage that is purchased each year by state, the total amount of life insurance that is in force and how much money life insurance companies actually pay out in claims each year.
As you will see in the tables below, the sheer size of the life insurance industry (billions and trillions of dollars) and that great impact it has on people’s lives and society.
Table of contents
- How Does Your State Rank for Life Insurance?
- Individual Life Insurance Coverage Purchased Annually By State
- Total Life Insurance Coverage In Force (Active) By State
- Life Insurance Death Benefit Payment Claims To Beneficiaries by State
- Wrap Up
How Does Your State Rank for Life Insurance?
In this article we’ll take a look at the statistics for; the amount of life insurance coverage purchased in each state every year, the total amount of life insurance currently in force coverage (active coverage) and the total amount of money life insurance companies pay out every year from death payments.
As you will notice, the states with the largest populations will also be ranked higher in the tables below, which makes sense statistically.
Individual Life Insurance Coverage Purchased Annually By State
Below is a table for the total individual life insurance purchased by state (coverage amount in millions) in order from the largest to smallest for all 50 states and D.C.
Source: ACLI with National Association of Insurance Commissioners (NAIC) data 2021. Table updated 1/2023
Total Life Insurance Coverage In Force (Active) By State
Below is a table for the total amount of life insurance in force (active) by state (coverage amount in millions) from all all sources: individual, group and credit life insurance.
|District of Columbia||$188,537|
Source: ACLI with National Association of Insurance Commissioners (NAIC) data 2021. Table includes a total from individual, group and credit life insurance policies. Table updated 1/2023
Life Insurance Death Benefit Payment Claims To Beneficiaries by State
Below is a table for the total amount of life insurance death payments paid out by state (coverage amount in thousands).
As you can see in the table below, beneficiaries in California received life insurance proceeds (paid out from death) of $13 billion in a single year followed by Texas $11 billion, Florida and New York $9 billion, and Pennsylvania with $6 billion to round out the top five states in the United States.
Life Insurance Paid Out From Death Benefit Claims Per Year (amounts are in thousands of dollars)
|State||Death Payments (Pay Out)|
|District of Columbia||$405,521|
Source: ACLI with National Association of Insurance Commissioners (NAIC) data for 2021.
As you can see in our article on life insurance statistics by state 2023, the amount of financial security that life insurance provides in America is staggering. $100 billion in life insurance was paid out to beneficiaries in America 2021. Americans have trillions of of dollars of active life insurance coverage in force that provide peace of mind to the majority of Americans.
Behind the numbers are real people, families and businesses that rely on life insurance to provide liquidity should the unexpected suddenly occur. The immediate financial benefits and the safety net that life insurance provides to the loved ones left behind is truly remarkable when you think about it and look beyond just the data and statistics in a chart.
How Many Life Insurance Companies Are There in America 2023?
There are 737 life insurance companies in the United States.
How Much Do Life Insurance Companies Pay Out in Death Benefit Payments To Beneficiaries Every Year?
Life insurance companies in America paid out $100 billion in death benefit claims to beneficiaries in 2021.
Do Life Insurance Companies Pay Out Claims?
Yes, life insurance in America is highly regulated and life insurance policies are contracts. In fact, life insurance companies in America paid out over $100 billion in claims just from death claim payments in 2021 alone.
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