by Natalie Chambliss | April 15, 2024
2024 Insurance Barometer Study
Education Is Key to People Getting the Life Insurance They Need
Half of Americans own life insurance. That’s the good news: They see the value in protecting their family’s financial future. However, many people who don’t own it say they need it (62%), as well as those who do have coverage but say they need more (22%). Together, this need gap represents 102 million Americans.
These statistics are from the 2024 Insurance Barometer Study, by Life Happens and LIMRA, which is now in its 14th year. It tracks consumer perceptions and attitudes towards life insurance and other financial products.
So, what’s stopping people from getting the coverage they know they need? The No.1 reason is they think it’s too expensive. But is it, really? The truth is that 72% of people overestimate the true cost of life insurance.* That’s a huge figure. And most are not basing their estimates on reality. In fact, more than half of people (54%) who overestimated the cost said that they used either a wild guess or gut instinct.
All this price guessing is standing in the way of protecting their family—the solution: education. And people do admit they lack understanding: 44% say they aren’t very knowledgeable about life insurance, with more than half of women (51%) saying so.
This stands at the heart of Life Happens’ nonprofit mission to educate more Americans about this important topic.
Reaching the LGBTQ+ Community
This year the study focused on better understanding the LGBTQ+ community and found that the life insurance need gap (46%) is greater than for the population in general (42%). This means there is an awareness among those who don’t own it that they need it, as well as those who do own it and recognize that they need more. This is true of other minority communities the study has delved into in years past. The need gap in 2024 for Black Americans is 49% and Hispanics 53%, well above the average.
When looking at general financial concerns, they were more elevated across the board for the LGBTQ+ community than for Americans in general. This includes top concerns like money for a comfortable retirement (52%) and being able to save for an emergency fund (47%), as well as job security/steady income (39%), which was above the general population (30%). However, those in the LGBTQ+ community with life insurance express less financial concern (56%) than those who don’t own it (41%). This is in keeping with the general population. Those who own life insurance feel more financially secure (62%) than those who don’t own it (46%).
Interestingly, when asked if they felt potential discrimination when buying life insurance, the answer was the same as everyone else (5%). However, when asked if “life insurance companies prioritize fairness and equality in their practices,” only 28% said they agreed or strongly agreed with this statement.
The “Middle Years” may bring life events such as marriage, raising children, buying a home, etc. The study has found that Gen X is no longer the most worried about finances; Millennials are. It appears a generational shift is underway that may be precipitated by societal changes, such as getting married and having children later than previous generations.
Millennials’ financial worries top all generations, including having enough money for retirement (54%), being able to support themselves if they couldn’t work due to a disabling illness or injury (45%), and paying for long-term care services (40%).
These issues can be addressed in part or in whole with insurance-based solutions. And yet, one of the things that can bring them most financial peace of mind—life insurance—is something that fewer Millennials own it (48%) than their older Gen X counterparts (56%). This may be exacerbated by the fact that almost half (47%) admit that they took a wild guess or used a gut feeling to estimate the cost.
An area that appears to be growing in popularity with the public is combination products, specifically in this study, life insurance with long-term care benefits.
The study first asked about combination products in 2016, and interest has grown. This year, almost seven in 10 adults of all ages say that if they were in the market for life insurance, they would be “somewhat” likely to buy a combination product (41%) to “very” or “extremely” likely (28%) to help them to address the need for life insurance and long-term care. A key reason they give is the concern about long-term care services depleting their savings (36%).
And this is good news, as more than a third are worried about paying for long-term care—and this concern weighs on the younger Millennials (39%) as well as Gen Xers (37%). Overall, six in 10 say they need long-term care coverage, yet only 18% say they own it.
*Survey respondents were asked to estimate the cost of a $250,000, 20-year level term life insurance policy for a healthy, nonsmoking 30-year-old.
Discover more
For more information on this study and its methodology, view our press release.
by Natalie Chambliss | August 30, 2023
Single Parents and the Financial Future
What is weighing on single parents’ minds? There’s one thing for sure: their children’s financial future.
According to a new survey by Life Happens—Single Parents and the Financial Future—single parents think about their child’s financial future on average five times a day.
And the average single parent says they’d need a minimum of $332,705 in savings to feel at ease about raising their child. That said, only half (52%) say they’ve purchased life insurance to protect their children’s financial future, if someone else had to raise them.
There are close to 11 million single-parent families in the US¹, accounting for 23% of all households.² Three quarters (75%) say they felt overwhelmed with becoming a single parent, and more than a quarter (27%) of those admit being very overwhelmed.
Here’s what else they’ve said:
- Four in 10 single parents (43%) hadn’t started planning for their child’s financial future until early childhood (ages of 4-6) or later. Only 10% started before their child was born.
- Sacrifices that single parents have made for their children include going into debt (42%) and altering their career or work choices (52%).
- Single dads are more confident about securing their child’s financial future than single moms (69% vs. 58%).
- 6 in 10 single parents say they felt comfortable using online communities to discuss how to plan for their financial future, edging out financial professionals.
Does life insurance play a role?
- Half of single parents (52%) said they bought life insurance to provide financial security for their children if they were to die unexpectedly.
- Single parents say they’re more likely to depend first on savings (59%) and family (57%) if they were to die than on life insurance (47%).
- A third of single moms (36%) and three in 10 dads (29%) say they don’t consider life insurance as a way to protect their child’s financial future.
- More than a quarter (28%) say they’d let others rely on a crowd funding site to help support their kids if they died.
Gen Z is very open to having financial discussions
Gen Z single parents, those age 18-26, are much more likely to feel comfortable talking about financial planning with others—from family to financial professionals—than older single parents are.
They are also most likely to say they value life insurance as a protection vehicle. Almost half of Gen Z said life insurance was very important (48%) to protect their child financially if something happened to them vs 33% in general.
Here is how comfortable Gen Z feels talking about financial planning vs the population as a whole:
Gen Z vs the general population
Family members: 86% vs 69%
Financial advisor: 79% vs 58%
Online communities or forums: 76% vs 59%
Accountant/tax professional: 74% vs 52%
Close friends: 65% vs 48%
To source this study, please use: Single Parents and the Financial Future, Life Happens, 2023
View the infographic from this study here. And for media inquiries, contact lifehappens@kwtglobal.com.
by Natalie Chambliss | April 24, 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.
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.
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.
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.”
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%).
*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.
by Devin Pascoe | September 8, 2022
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.
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)
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
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.
by Devin Pascoe | April 25, 2022
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.
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
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.
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.
