Key Life Insurance Statistics for 2023
Finding the right life insurance policy can be a complex process, with many decisions to make and factors to consider. When shopping for life insurance, understanding the latest data, trends and statistics can give you more insight about the right type of coverage for you. As of 2023:
The face amount of life insurance policy purchases in the United States is $3.29 trillion
Life insurance ownership in the United States has fallen in recent years. In 2022, only 50% of Americans owned life insurance, down from 60% in 2016
According to the 2022 Insurance Barometer Study conducted by LIMRA and Life Happens, 106 million adults lack life insurance or adequate coverage
In this article, we’ll walk you through recent statistics and data about life insurance in the United States, including how many people have it, the most popular types of coverage and other life insurance trends, so you can make informed decisions about your policy.
How many people have life insurance in the United States?
According to Forbes, at least three in four American adults have some form of life insurance. However, coverage varies by demographic; for example, women are twice as likely as men to lack life insurance.Life insurance preference also varies by generation. According to Annuity.org:
39% of Millennial Americans report needing life insurance but don't own a policy
50% of Gen X Americans own life insurance, while 32% report that they need life insurance but don’t have a policy
57% of Baby Boomer Americans own life insurance
No matter your demographic, life insurance can be a valuable tool to protect your loved ones and your assets.
What are the most popular types of life insurance?
The most popular types of life insurance are term life insurance and permanent life insurance. Term life insurance is designed to provide coverage for a certain period of time, typically a 10-, 15-, 20-, 25- or 30-year term. Since you only pay for it as long as you need it, term life insurance is typically more affordable than permanent life insurance, but it has no cash value component. Permanent life insurance is a category of types of life insurance that don’t expire, including whole life insurance and universal life insurance. Permanent coverage tends to be more expensive than term coverage, but it has a cash value component that can grow over time and can be used as a savings account.
Life Insurance Trends
Let’s take a look at some of the recent trends around life insurance coverage and purchasing habits.
A growing concern about lack of appropriate coverage. The number of Americans who believe they don’t have enough life insurance has more than doubled since 2010.1
The effects of COVID-19: 55% of young adults said the COVID-19 pandemic made them more likely to consider buying life insurance.1
Rising premiums and lower policy sales: According to LIMRA, the total U.S. life insurance new annualized premiums increased 6% in the second quarter of 2022, while policy sales fell 11%. However, remember that once you purchase life insurance, your premium is locked in and will stay unaffected by inflation.
Looking to learn more about life insurance coverage? SelectQuote can help.
Although life insurance data, statistics and trends will always evolve, the value of having the right life insurance policy remains unchanged. SelectQuote has more than 35 years of experience and can answer any questions you have about life insurance coverage. We make it easy to navigate the complexities of life insurance by searching trust carriers for you in just minutes.
1. https://www.forbes.com/advisor/life-insurance/life-insurance-statistics/#americans-drafting-wills
