Life Insurance Statistics

Goals

To gain understanding of life insurance demographics to develop potential market strategies and opportunities.

Early Findings

As of 2019, 57% of Americans had life insurance. The attached spreadsheet is used to provide statistics on life insurance markets.

Age Considerations

  • Millennials tend to lack information on types of life insurance or amounts of insurance needed, leading to 58% of Millennials not purchasing life insurance as of 2019.
  • Life insurance needs vary by generation.
  • Millennials buy life insurance to plan ahead, and their plans cost less.
  • Generation X needs life insurance to maintain standard of living in an emergency, to prepare for children's college expenses, to cover mortgage in case of death, and to provide for dependents.
  • Baby Boomers buy life insurance to ensure income for a surviving spouse or dependents and to cover final expenses.
  • Baby Boomers will spend $700-2290 per year for a 10-year, $250,000 policy.

Household Considerations

  • Households with children tend to buy life insurance more frequently, with 70% of these households having life insurance.
  • There remain approximately 58 million households reporting a need for life insurance, yet only half of these families reported shopping for insurance.

Summary of Early Findings

Percentage information was not located for life insurance ownership by age bracket beyond Millennials. However, significant information is available as to the needs and motivations for life insurance purchase for various generations. The first hour of research found limited information regarding household life insurance percentages and, again, more information addressing what motivates these individuals to purchase insurance. A table spreadsheet was created to note statistical information found, though the numerical information was very limited. LIMRA appears to have additional information for paying members, but public information from LIMRA did not reveal the statistics desired. Proprietary research was scanned as well, but the requested information was not found.

Proposed next steps:

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