Unfortunately, nearly 40% of U.S. adults are reported to be uninsured or underinsured when it comes to life insurance coverage.
We organized, vetted, and categorized a list of up-to-date life insurance facts and statistics for 2022 to show consumers and financial professionals the import role that life insurance has on protecting families and businesses.
In this article, we’ll highlight the following:
- Top life insurance statistics
- Cost- life insurance cost statistics
- Insurers- life insurance company statistics
- Life expectancy statistics- life insurance
- Millennials- life insurance statistics
- Employer vs individual life insurance statistics
- Women- life insurance statistics
- Taxes- life insurance statistics
- Wrap Up
- Additional information
Top life insurance statistics
Here are the most important life insurance statistics (stats) that we think you should know in 2022.
- 40% of the U.S. adult population is underinsured or uninsured in regards to life insurance coverage (LIMRA).
- 102 million Americans are underinsured or uninsured in regards to life insurance coverage (LIMRA).
- 47% of Americans say they have put off purchasing life insurance they know they need (LIMRA).
- $90 billion was the amount of money paid to beneficiaries in death benefit claims in 2020 (ACLI).
- 43.1 million life insurance policies were purchased in 2020 (ACLI).
- $20.4 trillion is the total amount of life insurance coverage in the United States (ACLI Fact Book).
- $3.3 trillion was the amount of new life was purchased in 2020 (ACLI Fact Book).
- 42% of American households would experience financial hardship within six months should a wage earner pass away unexpectedly (LIMRA).
- 54% of Americans are covered by some type life insurance coverage (iii.org).
- 73 million uninsured Americans say they need life insurance (LIMRA).
- 29 million underinsured Americans believe they need more life insurance coverage (LIMRA).
- 31% of consumers say they’re likely to purchase life insurance due to pandemic (iii.org).
- 55% of uninsured consumers say they like the idea of avoiding seeking and undergoing a paramedeical exam (LIMA).
- 59% of consumers who don’t own life insurance say they need it (Life Happens).
- 39% of consumers who own life insurance wished they purchased it sooner (Life Happens).
- 49% of life insurance is sold through independent agents (iii.org).
- 15% of baby boomers are more likely to purchase life insurance due to COVID-19 (Kiplinger).
- 31% of Gen Xers are more likely to purchase life insurance due to the pandemic (Kiplinger).
- 25% of Americans see rising inflation as the largest risk to their retirement plans (CNBC).
- 30% of consumers view life insurance only for burial and final expenses (LIMRA).
- 80% of the nearly 11 million single parent households in the U.S. were headed by single mothers (Single Mothers Guide).
- 41 million Americans say they need life insurance but don’t have it (LIMRA Barometer Study).
Cost- life insurance cost statistics
One of main reasons why there is a such a large life insurance coverage gap is that most people overestimate the true cost of life insurance.
- 50% + of Americans overestimate the cost of life insurance by 3x (Life Happens).
- 53% of Americans haven’t purchased life insurance because they are unsure how much they need or what type of coverage to buy (LIMRA).
Take a look at our average cost of term life insurance chart to see sample rates based on age, amount and term.
Insurers- life insurance company statistics
Below are some key facts (stats) about life insurance companies in United States 2022.
- 747 is the number of life insurance companies in the U.S. (ACLI).
- $12.2 trillion is the amount if life insurance in force from stock life insurers (ACLI).
- $7.7 trillion is the amount of life insurance with mutual life insurers (ACLI).
- $359 billion is the amount of life insurance in force from fraternal life insurance companies (ACLI).
See the complete list of the top 25 largest life insurance companies 2022 in the U.S.
Life expectancy statistics- life insurance
- 77.0 years old is the average life in the United States as of 12/2021 (CDC).
- 79.9 years old is the average life expectancy for females in the U.S. as of 12/2021 (CDC).
- 74.2 years old is the average life expectancy for males in the U.S. as of 12/2021 (CDC).
- 1.8 years DECREASE in life expectancy from end of 2019 to the end of 2020 in U.S., largest one-year decline since WWII, reported December 2021 (Wall Street Journal).
Millennials- life insurance statistics
- 50% of Millennials say their families would face financial hardship should a wage earner pass away unexpectedly (LIMA).
- 49% of Millennials own life insurance (LIMRA).
- 48% of Millennials say they plan to purchase life insurance coverage in the next year (Life Happens).
- 43% of Millennials are very concerned about leaving their dependents is a difficult financial situation or burdening others with funeral expenses if they should die (LIMRA).
- 45% of Millennials are more likely to purchase life insurance due to COVID-19 (Black Enterprise).
- 44% of Millennials overestimate the cost of term life insurance by more than 6x (Life Happens).
Employer vs. individual life insurance statistics
While most people have some type of life insurance coverage through their employer, the importance of owning an individual life insurance policy outside of work has never been more apparent as it has been in the last two years.
- 63% of the total in force life insurance in America is individual life insurance purchased separately outside from the employer. (ACLI Fact Book).
- 4.2 million was the number of new individual (outside of work) term life insurance policies that were purchased in 2020 (ACLI Fact Book).
- 41% of all life insurance policies in force in 2020 were group coverage (ACLI Fact Book).
- 4.5 million people resigned from their jobs in November 2021 (SHRM).
- 21% of adults with employment-based life insurance coverage reported buying additional coverage through work due to COVID-19 (PLANSPONSOR).
- 29% of American workers believe the coverage through their employer is enough (LIMRA).
Women- life Insurance statistics
- 47% of women own life insurance (Life Happens).
- 32% of women with no life insurance say they need coverage (Life Happens).
- 11% of women with life insurance coverage say they need more (Life Happens).
- 18 million + women lost their life insurance coverage in 2020 (insurancenews.net).
- 50% of women with children under the age of 18 express levels of financial stress in 2020 (insurenews.net).
- $178,201 per year is the amount of money that Salary.com places the value of childcare, housekeeping, and other contributions that stay at home mothers provide (Life Happens).
Taxes- life insurance statistics
In addition to the immense benefit of family and business protection for pennies on the dollar that life insurance provides, many people are unaware that life insurance is income tax-free. This means that for most American there is no tax on life insurance proceeds.
- One third of consumers believe a life insurance death benefit is taxed and 4 in 10 are unsure. Life insurance proceeds are generally income tax-free unless subject to estate taxes. (LIMRA).
- $12,060,000 is the federal estate tax exemption for individuals for a death in 2022 (Forbes).
- $24,120,000 is the federal estate tax exemption for married couples for deaths in 2022 (Investopedia).
- $9.3 billion was the amount Americans paid in estate taxes last year after deductions and state death deductions (ThinkAdvisor).
- New York
- New Jersey
For more information, see our post on Life Insurance Statistics by State 2022.
As you see in our list above of 54 life insurance statistics 2022, life insurance is an essential part of any sound financial plan. Unfortunately, too many Americans are uninsured or underinsured which poses an unnecessary and great risk to their families should the unexpected occur. This can not only have an immediate impact on the loved ones left behind but the effects could reverberate for generations.
One of the biggest reasons for the life insurance gap in coverage is that the majority of Americas perceive the cost to own a life insurance policy to be much greater then it actually is. In fact, according to LIMRA and Life Happens, the majority of Americans overestimate the true cost of life insurance by 3x and and 44% of Millennials overestimate the actual cost of term life insurance by about six times.
Another factor that contributes to the gap in life insurance coverage is the perceived notion that the process to purchase life insurance takes too long and is laborious.
Fortunately, securing a life insurance policy has never been easier than it is today for those that qualify. This is especially true for Millennials, Gen X and Gen Z that are generally in good health. There are plenty of options available to quickly and easily secure a policy online to protect beneficiaries. Also, baby boomers now have more options than ever to secure life insurance whether it is a term life, whole life, universal life or guaranteed issue policy.
If you would like to lean more, we’ve got a few articles that answer some the most common questions regarding life insurance:
- 25 Largest Life Insurance Companies 2022
- Best Life Insurance Companies That Pay Out 2022
- Average cost of term life insurance
- 10 vs 15 vs 20 vs 25 vs 30 Year Term Life Insurance Policy
- Life Insurance Company Ratings 2022
- Pacific Life Insurance Company Review
- AIG Life Insurance Company Review
- Banner Life Insurance Company Review
- How Much Life Insurance Can I Get for $100 Month