Life Insurance Statistics and Industry Trends To Know in 2024

Life insurance can be the safety net that keeps your household financially secure after the loss of a primary wage earner. After a life-changing global pandemic, interest in life insurance has remained strong. 

According to the trade group Limra’s most recent Insurance Barometer Study, 37% of Americans say they plan on buying life insurance in 2024. The study also found that 42% of Americans feel they don’t have as much life insurance as they need.

Read over the important 2024 life insurance statistics to help you understand industry trends and which demographics are buying life insurance and why.

U.S. Life Insurance Ownership Overview

Though it’s common to own a life insurance policy, there is still a large gap between those who are covered and those who aren’t. Part of the reason is that many Americans can’t afford it. According to the Limra study, the number one reason people reported not having life insurance or enough life insurance is because it’s too expensive.

Limra also reported that households earning under $50,000 per year were least likely to have enough life insurance, with 56% of those respondents saying they needed more life insurance.

Relationship status is another factor that contributes to life insurance ownership. Married people are generally more likely to purchase life insurance than single people, and parents of minors are far more likely to have active life insurance policies than those who do not have children. In 2024, 59% of single mothers recognize that they need insurance coverage or don’t have enough. 

How Many People Have Life Insurance Policies?

According to Limra’s study, about half of American adults have life insurance coverage. Age has a significant influence on who is likely to be insured. Limra found that respondents aged 18 to 58 were less likely to have life insurance coverage.

Life Insurance by the Generations

• 49% of Gen Z reported not having as much life insurance as they need
• 46% of millennials reported not having as much life insurance as they need
• 45% of Gen X reported not having as much life insurance as they need

Though younger people are less likely to have life insurance or to have enough life insurance, young adults have shown more interest in buying life insurance in recent years. According to Choice Mutual, life insurance enrollment for young adults has increased year over year.

In my experience as an agent, I observe that a lack of financial education has been a reason for not considering life insurance in the past. Many clients approach me after the loss of a loved one, sickness of a spouse or another life event that sparks their interest. The role of a good advisor can assist them in determining the coverage they need within the desired budget of the potential client.

Eric EstevezLicensed Independent Insurance Broker and Owner of HLC Insurance Broker, LLC

Eric Estevez is an independently licensed life insurance agent who serves as a financial professional for a multinational corporation. Upon graduating from William Paterson University with a bachelor’s degree in accounting, Eric kickstarted his career as a financial institution auditor. His first day on the job was Sept. 15, 2008…

Life Insurance Facts by Gender

Gender gaps are another large determining factor in life insurance ownership. While more women report needing life insurance, more men own a policy. Women generally have lower wages than men, live longer and spend more years providing unpaid familial care, all of which may contribute to their lower rate of coverage.

Gender Differences in Life Insurance

• According to Limra, 46% of women have life insurance in 2024, compared to 57% of men. This data represents the largest disparity in coverage between men and women in the study’s 14-year history.
• 45% of women report needing life insurance or more life insurance coverage in 2024.
• Single mothers are the least likely to have life insurance coverage, with only 41% of this demographic owning a policy.
• 60% of women with life insurance feel financially secure.
• 58% of women without life insurance report feeling financially insecure.
• 52% of men and 65% of women both reported burial and final expenses as a major reason to own life insurance.

Life insurance tends to cost less for women than for men, but their reasons for buying are similar. Both groups cited burial and final expenses as their top reasons to own life insurance, second to replacing lost wages. 

Life Insurance Facts by Household Income

Americans with lower household income are less likely to have life insurance coverage. Of households making less than $50,000 a year, only 56% have adequate coverage. 

Limra’s most recent study highlighted that the biggest gap in coverage exists among middle-income Americans, meaning those with a household income between $50,000 and $149,999 a year. 

Household Income of Life Insurance Holders

• 40% of middle-income adults — a total of 50 million adults — have no life insurance policy or less coverage than they need.
• 54% of this demographic are interested in purchasing life insurance.

Higher-income households tend to have more life insurance coverage, in part because they may be more focused on estate planning and protecting their assets.

Why Do People Buy Life Insurance?

According to a recent report from LIMRA, the top three reasons people buy life insurance are to cover burial expenses, to compensate for the income of a deceased wage earner and to transfer wealth or leave an inheritance for their beneficiaries.

The Top 3 Reasons People Buy Life Insurance

Burial Expenses

83% of Americans agree life insurance is important to cover burial and final expenses.

Inheritance

63% of Americans agree life insurance is important to help transfer wealth or leave an inheritance.

Lost Income

68% of Americans agree life insurance is important to cover lost income of a deceased wage earner.

• 83% of Americans consider covering burial and final expenses as important reasons to buy life insurance.
• 68% of Americans consider covering the income of a deceased wage earner as an important reason to buy life insurance.
• 63% of Americans consider it important to buy life insurance to help transfer wealth or leave an inheritance.
• 60% of Americans without life insurance say the cost is the major reason they aren’t covered.
• 55% of Americans report their other financial priorities prevent them from buying life insurance.
• 53% of consumers are unsure what type of life insurance they should get.

Some of the most common reasons people don’t buy life insurance are because of the cost, the prevalence of other financial priorities or because they’re unsure of what type of policy to get.

Life Insurance Industry Trends

Of the total insurance providers that report to the National Association of Insurance Commissioners, the top 10 insurance providers are responsible for nearly half of all life insurance policies. The combined market share of the top 10 providers is nearly 46%. 

Top 10 Life Insurance Providers

In 2023, direct life insurance premiums brought in over $193 billion for the top 25 providers combined. New York Life is the life insurance provider with the largest industry market share at 6.86%.

How Much Does Life Insurance Pay Out?

Americans received a total of $831.9 billion in total from all life insurance claims and benefits in 2023, a significant increase from the $797.7 billion paid out the previous year.

Life Insurance Payouts

• The total amount paid out from death benefits was $89 billion in 2023, down from $91.7 billion the year before.
• In 2023, the largest single payout category was surrender benefits and early terminations or cash withdrawals from life insurance contracts, which totaled $416.2 billion in payouts.
• That payout category also saw the largest year-over-year increase, up from $353 billion the year before.
• Annuity benefits also increased from almost $93 billion in 2022 to over $101 billion in 2023.

Finding the Right Coverage for You

If your household would find it financially difficult to deal with the death of its primary wage earner, life insurance is a great safety net. Whether you invest in a traditional policy or an annuity, there are options out there to ensure you and your family are covered no matter what.

If you’re interested in investing in an annuity or a life insurance policy, connect with a financial advisor to help answer your questions about the process.