Millennials and Gen Z Lead Growing Need for Life Insurance in 2023

Millennials and Gen Z Lead Growing Need for Life Insurance in 2023

2023 Insurance Barometer Study

Millennials and Gen Z Lead Growing Need for Life Insurance in 2023

Education around ease and affordability of ownership is key to expanding coverage to those who know they need it, especially single moms.

For more information on this study, view our press release.

The pandemic’s economic disruption altered people’s views on a wide range of money topics—from the feeling of financial insecurity, to the extra burden of debt, to how best to protect their loved ones, physically and financially. People’s interest in life insurance—knowing they have a need for it—was heightened during the pandemic and remains so, as people take a closer look at their financial security and well-being. The 2023 Insurance Barometer Study, by Life Happens and LIMRA, shows this trend is prevalent among the younger generations, as well as with single mothers.

Single Moms Need the Industry’s Help

Fewer women own life insurance than men, 49% vs 55% respectively. And that number is even starker for single moms: Just 2 of 5 single mothers (40%) own life insurance.

That said, 6 in 10 single moms (59%) know they have a life insurance need gap—meaning they need coverage or more of it (vs. 41% of all adults) equaling about 5 million households. And 4 in 10 (38%) say they intend to buy coverage this year. With 7.9 million single-mom households, according to the U.S. Census Bureau, there is a dire need for single moms to purchase life insurance, or more of it.

6 in 10 single moms say they need life insurance coverage—or more of it.

The primary reason single moms own life insurance (63%) is the same as the general population: to cover burial costs. However, only 26% say they have it to replace lost income. And more than half (51%) say they are “extremely concerned” about leaving dependents in a difficult financial situation if they died prematurely, vs 29% of the general population.

That’s not the only area of financial concern. In fact, single moms have increased levels of concern over a wide range of financial issues—often double-digits—over the general population.

  • Having money for a comfortable retirement: 58% vs 44%
  • Saving for an emergency fund: 56% vs 38%
  • Paying monthly bills: 50% vs 32%
  • Ability to afford college: 40% vs 22%

Owning life insurance makes people feel more financially secure: 69% of life insurance owners feel secure vs. 49% who don’t own. For single moms, this is 52% of owners feel secure vs 30% who don’t own.

The good news is that while only a third of single moms (35%) work with a financial advisor currently, more than half without one are looking for an advisor (52%) to help them navigate their finances.

Desire and Need Are on the Rise

Gen Z is growing up—they’re adults now who are in the weeds of financial responsibilities and stresses. Half of Gen Z is now 18-26 years old, which means 19 million young adults are ready for life insurance, most of whom are non-owners; and Millennials, at 27 to 42, are well into their careers and starting families.  The study took a look at life insurance ownership among different age groups and found that half of all adults (52%) own life insurance, with 40% of Gen Z adults and 48% of Millennials currently owning it.

Half of Millennials and Gen Z adults say they need life insurance—or more of it.

As Gen Z starts hitting life milestones such as finding a partner, buying a home and having children, half (49%) say they either need to get life insurance or increase their coverage. And Millennials are not far behind, with 47% saying so. And they are ready to take action: 44% of Gen Z adults and 50% of Millennials say they intend to buy life insurance this year.

They also want to purchase it where they have become comfortable—online—and that goes for all generations. In 2011, 64% of people said they preferred to buy life insurance in person; by 2020, just 41% felt this way. In 2023, it dropped to 29%.

Education Is Key for Gen Z

There is work to do on educating people about ownership: 42% of all adults say they’re only somewhat or not at all knowledgeable about life insurance.

A quarter of Gen Z and Millennials say that not knowing how much or what kind of life insurance to buy stops them from getting coverage. And 37% of Gen Z and 27% of Millennials say they “haven’t gotten around to it.”

A quarter of Gen Z adults and Millennials say not knowing how much or what kind of life insurance to buy stops them from getting coverage.

Across generations, cost is cited as the top reason for not getting life insurance. But only a quarter (24%) of people correctly estimated the true cost of a policy for a healthy 30-year-old, which is around $200 a year.* More than half of Gen Z adults (55%) and 38% of Millennials thought it would be $1,000 or more.

With the current climate adding financial uncertainties to Gen Z and Millennials, including layoffs and inflation, it is imperative that the two age groups learn how to protect their loved ones financially. Education around finances in general, inclusive of life insurance, will be extremely beneficial, particularly for Millennials, who cite the highest overall level of financial concern (39%).

Please source all statistics: 2023 Insurance Barometer Study, Life Happens and LIMRA

The full 2023 Insurance Barometer Study is available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact partnerships@lifehappens.org. For media inquiries, contact lifehappens@kwtglobal.com.

*Survey respondents were asked how much they thought a $250,000 20-year level term policy would cost per year for a healthy, nonsmoking 30-year-old, which is around $200.

Discover more

For more information on this study and its methodology, view our press release.

Share

The Life Insurance “Need Gap” for Hispanic Americans

The Life Insurance “Need Gap” for Hispanic Americans

Supplemental Report: 2022 Insurance Barometer Study

The Life Insurance “Need Gap” for Hispanic Americans

Owning life insurance gives people financial peace of mind. In fact, among those with dependents who have life insurance, 68% say they feel financially secure, compared with less than half (47%) of those with no coverage.

Why, then, do so many not have the coverage they need? Only half of adult Americans say they have life insurance, and that number is even more pronounced in the Hispanic community, where just 42% have coverage. This represents a decline of 9 points for Hispanic Americans compared to last year.

A new report, “Hispanic Americans: Life Insurance Ownership and Attitudes,” gives insight into this disparity and how this gap can be overcome. This report is a supplement to the 2022 Insurance Barometer Study, by Life Happens and LIMRA.

For more information on this study, view our press release.

The need for life insurance

More than half of Hispanic Americans (51%) say they have a life insurance need:

  • 40% are uninsured and say they need life insurance
  • 11% have some life insurance and say they need more
  • This suggests 22 million Hispanics in the U.S. have a need for life insurance (based on U.S. Census data)
Most people aren't prepared financially for the death of a primary wage earner

Why do Hispanic Americans want life insurance?

The most universal reason to own life insurance—across race and ethnicity—is to cover burial and final expenses, and Hispanic Americans are no exception.

  • 7 in 10 Hispanic Americans cite this as the major reason they own life insurance (69%)
  • The next two “major” reasons for owning it are to replace lost wages (41%) and to leave an inheritance (39%)

What’s stopping them from getting coverage?

Hispanic Americans say that cost (38%) and competing financial priorities (38%) are the top reasons that they don’t have life insurance or more of it.

On average, Hispanic Americans are feeling more financial strain than other Americans: They report more concern about a wider range of financial issues than other races and ethnicities. Cost may be a perceived barrier to ownership, however, as 75% of people overestimate the true cost of life insurance.

Engaging and educating about life insurance

Hispanic Americans are open to advice and education. More than a quarter (26%) say they are unsure of how much and what type of life insurance to buy. In addition,

  • 27% of Hispanic Americans are looking for a financial advisor, vs. 20% of the general population
  • They use social media for financial info more than other races and ethnicities (66% of Hispanic Americans vs. 53% of the general population)
  • They prefer to use newer social-media platforms like Instagram and TikTok for financial knowledge

The full 2022 Insurance Barometer Study and this supplemental report, “Hispanic Americans: Life Insurance Ownership and Attitudes,” are available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact Erik at esvensson@lifehappens.org. For media inquiries, contact lifehappens@kwtglobal.com.

We’re committed to educating Americans about life insurance

At Life Happens, we establish and lead several annual campaigns, including Life Insurance Awareness Month and the Help Protect Our Families campaign, to help people overcome perceived barriers and motivate them to purchase life insurance to protect their loved ones financially. Check out our free Life Insurance Needs Calculator in English or Spanish to evaluate your own coverage needs and take action.

Discover more

For more information on this study and its methodology, view our press release.

Share

Owning Life Insurance Provides a Clear Path to Financial Security

Owning Life Insurance Provides a Clear Path to Financial Security

2022 Insurance Barometer Study

Owning Life Insurance Provides a Clear Path to Financial Security

The 2022 Insurance Barometer Study, conducted annually by Life Happens and LIMRA, reveals that financial security is a concern for all generations, but one that can be addressed with a stronger understanding of life insurance and its value. Still, misconceptions around life insurance persist among consumers, with 80% overestimating the cost of a life insurance policy. This problem is also exacerbated by a general discomfort with end-of-life discussions surrounding death and financial planning, allowing the life insurance need gap to persist.

For more information on this study, view our press release.

Establishing financial security is a challenge spanning all generations

Financial insecurity is highest among Gen X (49%), followed by Millennials (44%), Gen Z (42%), and Baby Boomers (33%). And according to the survey, most households have not prepared for the loss of a primary wage earner.

  • 1 in 10 respondents report they’d feel financial strain in one week if their household’s primary earner died
  • Over 2 in 5 parents say it would take less than six months for financial hardship to set in
  • Only 1 in 5 respondents say they have a safety net of five years or more
Most people aren't prepared financially for the death of a primary wage earner
106 million adults are in need of life insurance--or more of it

We know we need life insurance, yet the need gap persists

Life insurance is a key element in feeling financially secure, yet the need gap – what people have vs. what they say they need – is at an all-time high (18 points) and more than double what it was 12 years ago.

  • 68% of life insurance owners feel financially secure compared to just 47% of non-owners

The unmet need for coverage rose significantly with the pandemic and remains elevated in 2022, revealing the lasting impact of COVID is still felt by many.

  • 31% of respondents say they are more likely to buy life insurance in 2022

A lack of knowledge may lead some to avoid important conversations

Consumers, especially Millennials and Gen Z, report feeling uncertainty about life insurance, which may be why some haven’t gotten coverage.

  • Almost half (42%) of respondents say they are somewhat or not at all knowledgeable about life insurance
  • Millennials (16%) and Gen Z (16%) are more likely than other generations to say they would not qualify for coverage, which is often not the case.

At the same time, respondents are largely uncomfortable talking about end-of-life planning with their loved ones, revealing the importance of education and the need to reframe conversations about life insurance to focus on long-term health and wellness in order to build trust and close the need gap.

40% say they are uncomfortable with end-of-life discussions
The full 2022 Insurance Barometer Study is available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact Erik at esvensson@lifehappens.org. For media inquiries, contact lifehappens@kwtglobal.com.

We’re committed to educating Americans about life insurance

At Life Happens, we establish and lead several annual campaigns, including Life Insurance Awareness Month and the Help Protect Our Families campaign, to help people overcome perceived barriers and motivate them to purchase life insurance to protect their loved ones financially. Check out our free Life Insurance Needs Calculator to evaluate your own coverage needs and take action.

Discover more

For more information on this study and its methodology, view our press release.

Share

Interest in Life Insurance Stays Strong

Interest in Life Insurance Stays Strong

Interest in Life Insurance Stays Strong

New data shows that half of American adults (50%) say they have life insurance and that COVID continues to drive interest in securing coverage, according to initial findings from the 2022 Insurance Barometer Study, by Life Happens and LIMRA.

Nearly 1/3 of people (31%) say COVID-19 has made it more likely they’ll purchase life insurance within the next 12 months. When looking at interest by age or race/ethnicity, it is highest among Millennials (44%), Black Americans (38%) and Hispanics (37%).

Purchase intent is also at a record high: 37% of Americans say they plan to buy life insurance this year.

Need Gap

In addition, 41% of those surveyed say they need life insurance—or more of it. (That equals 106 million adult Americans). Those who are younger are most likely to believe they have a coverage gap: 47% of Millennials and 49% of Gen Z say they need (or need more) life insurance. In addition, 44% of women believe they have a need gap.

Life insurance is critical for many, as 4 in 10 households say they’d face financial hardship in six months if a wage-earner died. Nearly a quarter say they would struggle financially within a month.

For more on these initial findings, watch this video with Faisa Stafford, president and CEO of Life Happens, and David Levenson, president and CEO of LIMRA, LOMA and LL Global.

Stay Tuned

The full 2022 Insurance Barometer Study will be available on April 25. In addition, there will be a comprehensive supplement published in early summer covering Hispanics’ perception about life insurance, motivations for buying coverage, financial priorities and more.

In the last decade, the Hispanic population in the U.S. has grown 23% to 62.1 million. Their collective wealth has also skyrocketed, up 87% from 2010 to $1.9 trillion.

And according to this year’s Barometer Study, six in 10 Hispanic adults are uninsured. But, they are keenly aware of the importance of life insurance, with seven in 10 saying they need life insurance and 42% say they plan to buy within the next year, which is higher than any other race or ethnicity.

We’re committed to educating Americans about life insurance

At Life Happens, we created and coordinate several campaigns, including Life Insurance Awarenes Month, every year to motivate people to purchase life insurance to protect their loved ones financially. To take action for your loved ones, we have a free Life Insurance Needs Calculator to help evaluate your own life insurance needs.

Share

For Love and Money

For Love and Money

For Love and Money

American relationships are changing, and finances are playing a key role. In fact, the new study “For Love and Money” from Life Happens found that those in a relationship are talking openly about their finances even before saying “I love you.”

And people are attracted to partners who can plan ahead—and that includes financial preparedness, with 4 in 10 describing financial security as one of the most attractive traits to have in a romantic partner.

For more information on this study, view our press release.

Key findings

  • 67% of those in a relationship agree there is nothing sexier than saving money.
  • 59% would feel more secure in their relationship if they discussed getting life insurance with their partner, and 51% say the right time to do that is before marriage.
  • 74% said it took between one and eight months to be comfortable talking about their finances with their partner, while in that same period, only 42% would say “I love you.
  • 42% describe financial security as one of the most attractive traits to have in a romantic partner.
Top 5 Most Important Milestones to Achieve in2021
•	58% of Americans said COVID-19 has drastically changed which milestones they’d like to accomplish in life.

Falling head over heels, but maybe not so traditionally

  • The majority (70%) said they discussed (or will discuss) getting married with their partner less than a year into a relationship.
  • 80% believe it’s more socially acceptable today for women to earn more than their male partners, and 77% don’t think relationships need one “breadwinner” anymore. 
  • 61% believe it’s no longer a “relationship requirement” to have a joint bank account when you’re married.
  • 64% say they’d rather talk about finances with their partner than discuss having children.

Finances are big in a relationship

  • 72% are willing to assist with paying down their partner’s debt.
  • Finances are also factoring into how people show their love, with respondents saying they do so by saving money (24%) and budgeting (23%).
  • When asked what financial decisions would demonstrate their love to someone, 36% said purchasing a life insurance policy, with men more likely to say that than women (40% vs 33%).
  • But there are still taboos. The most taboo financial topics to talk about with your partner were prenups (31%) and joint bank accounts (21%) and the least taboo was life insurance (2%).
•	3/4 of Americans said it’s important for them to get their finances in order this year.

Discover more

To source this study, please use: “For Love and Money,” Life Happens, Jan. 2022

For more information on this study and its methodology, view our press release. And for media inquiries, contact lifehappens@kwtglobal.com.

We’re committed to educating Americans about life insurance

At Life Happens, we created and coordinate the Insure Your Love campaign every year to motivate people to purchase life insurance to protect their loved ones financially. To take action for your loved ones, we have a free Life Insurance Needs Calculator to help evaluate your own life insurance needs.

Share

Pin It on Pinterest