Life Insurance

Among life insurance owners, 21 percent say they do not have enough coverage.* The percentage of Americans with a life insurance need-gap rose sharply in 2020, and has not ebbed since the generally accepted end of the COVID-19 pandemic in 2022.*

• Women (49 percent) are less likely than men (55 percent) to have life insurance. *
• Overall, self-reported life insurance ownership rose from 50 percent in 2022 to 52 percent in 2023.*
• 69 percent of life insurance owners feel secure versus 49 percent of non-owners, a 29 percent difference.*
• Perceived cost is cited as the top barrier to purchase life insurance. However, only a quarter (24 percent) of all respondents correctly estimated the true cost of a term life insurance policy. Year after year, consumers greatly overestimate the cost of life insurance.*
• A quarter of the three younger generations cite “lack of knowledge about life insurance products” as a reason not to own.*
• The top reason single mothers cite for owning life insurance is to cover final expenses. Research shows single mothers have a heightened sense of financial concern, sometimes nearly twice as much as the general population.*
• Black and Hispanic Americans report higher need for life insurance protection than other groups.

*2023 Insurance Barometer Study, LIMRA and Life Happens

Uses for Life Insurance

Many consumers realize that life insurance is used to pay for funeral expenses and/or leave a legacy through death benefit to your designated beneficiaries. Did you know life insurance also has additional living benefits?

Depending on the carrier and product, life insurance also can be used to:

• Pay outstanding debts or large expenses, such as mortgages and college loans
• Take an income tax-free loan from the cash value of the life insurance policy
• Provide a cash flow in retirement
• Cover healthcare costs related to a chronic or terminal illness
• Donate to a charitable organization
• Pay taxes that may be due on your estate

Consumer Resources

These materials are provided by Life Happens. Life Happens is a non-profit organization dedicated to helping Americans take personal financial responsibility through the ownership of life insurance and related products, including disability and long-term care insurance.

Life Happens also seeks to remind people of the important role insurance professionals perform in helping families, businesses, and individuals find the insurance products that best fit their needs. Life Happens does not endorse any product, company or insurance advisor. Its only interest is seeing that consumers get the coverage they need to protect themselves and their loved ones.

• Calculate Your Needs – Life Insurance Calculator (online calculator/form)
• Life Happens: Life Is for Living (Video)
• Life Happens: Chich Family: It’s About Family (Video)

This material is intended for both educational purposes and to promote interest in the subject matter. It does not address any individual’s specific situation and is not to serve as the basis for any purchasing decision. The material is based on the information available to me and, while deemed accurate, is not guaranteed. Numerical examples, if any, are only illustrative. Guarantees, when applicable, are backed by the financial strength and claims-paying ability of the issuing carrier. For additional information, please contact our agency.