Life Insurance

Goals

Gain an understanding of life insurance channels, including percentage of life insurance that is employer-sponsored vs. direct purchase, what size employers most frequently offer sponsored life insurance as a benefit, which life insurance products are most often offered by employers, and what level of life insurance is most often purchased by employees

Early Findings


  • The number of Americans with employee sponsored insurance vs. direct purchase is nearly an even split, with 108 million Americans having life insurance through a group/employer plan and 102 million having coverage through an individual plan they purchased.
  • Overall, 17% of civilian workers, 54% of union workers, and 89% of government workers have a life insurance policy.
  • In terms of sales channels, 51% of the life insurance is distributed by independent agents.
  • However, several sources noted that employer-provided group coverage is typically not enough to protect a household, and often would not cover income for a family.
  • Another source noted that the most common standard coverage amounts are $25,000, $50,000, or an employee’s annual salary.
  • Another source notes that salary based insurances typically offer values of one, two, or three times the employee's yearly salary.
  • In 2018, half of adults in the US surveyed had visited a life insurance company online independently to seek life insurance information.
  • 1 in 5 surveyed who have life insurance in the US do not believe it is enough coverage.

Proposed next steps:

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