Top Life Insurance Statistics for 2024 (2024)

FAQs

What are the statistics of people with life insurance? ›

52% of Americans have a life insurance policy. 30% of Americans say they need life insurance but don't have it yet. More than 100 million Americans are uninsured or underinsured when it comes to life insurance.

Gen X (ages 44-59) and Baby Boomer (ages 60-78) claim the highest percentage of ownership at 55 percent and 57 percent, respectfully. Millennial and Gen X generations are significantly more likely to own term life insurance when compared to younger and older generations.

In fact, a study done by Penn State University indicates that 99 percent of all term policies never pay out a death benefit. However, that's because most term policyholders don't pay their premiums and let their policies lapse, not because they outlive the policy term, according to Entrepreneur.

What is the average life insurance payout? The average life insurance payout in the U.S. is about $168,000, according to Aflac. However, the payout of your life insurance policy will depend on the amount of death benefit that you pay for, as well as any money borrowed against the policy prior to the payout.

The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

Life insurance is no longer needed for many people once they reach their 60s or 70s. At this point they retire, their kids have grown up, and they've paid off their mortgage and other debts. However, others prefer to keep life insurance later in life to leave an inheritance and to pay off final expenses.

Many life insurers don't issue term life insurance policies after the would-be policyholder reaches a certain age, with limits ranging from 75 to 90 years of age. If you're 55 or older, you may find it difficult to find term life policies up to 30 years or longer.

Typically, the premium amount increases, on average, about 8% to 10% for every year of age; it can be as low as 5% annually if your 40s, and as high as 12% annually if you're over age 50. With term life insurance, your premium is established when you buy a policy and remains the same every year.

Life insurance may not be worth if you have no dependents, if you have a tight budget, or if you have other plans for providing for them after your death.

Do you get money back if you outlive term life insurance? ›

Another reason companies are able keep term life premiums lower is that premiums are almost never refunded. This is normally the case even if you cancel your policy. So in most cases you shouldn't expect any money back after your term expires.

Generally, life insurance policies exclude coverage for deaths arising from participation in illegal activities or criminal behavior. Additionally, in some instances, the insurance provider could deny coverage for a death resulting from an illegal drug overdose or drunk driving.

How much life insurance does the average person have? According to the American Council of Life Insurers, the average size of new individual life insurance policies purchased in 2019 was $178,150 in 2019.

Many people don't get life insurance because they believe the process will be inconvenient. After all, you'll have to research your options, fill out a lengthy application, and undergo a medical exam that will require you to take time out of your already busy schedule, right?

The latest study, now in its 14^th year, finds a record-high number of American adults (42%) — representing 102 million adults — saying they need (or need more) life insurance. Importantly, 37% of consumers say they intend to purchase coverage within the next 12 months.

106 million Americans are underinsured

A whopping 41% of Americans (or 106 million, roughly) admit that they don't have adequate life insurance coverage, according to the 2022 Insurance Barometer Study conducted by the Life Insurance Marketing and Research Association (LIMRA) and Life Matters.