Life Insurance in the (Mis)Information Age

by Jessi Barnes | October 2, 2025

Life Insurance in the (Mis)Information Age

Even as rapid shifts in the digital landscape transform our industry, there is still a need for human insight, creativity and interaction to help more Americans get the life insurance coverage they need. This stands out in “Life Insurance in the (Mis)Information Age,” the second report from the 2025 Insurance Barometer Study, by Life Happens and LIMRA.

The study shows that social media has become a dominant source for financial and insurance education and information, especially for younger generations, while artificial intelligence (AI) is emerging as a key tool for research and shopping. Despite these changes, trust in financial professionals remains high, with most consumers still wanting human guidance at key stages of the life insurance purchase journey.

Here are some findings that highlight both the opportunities and challenges for our industry:

Use of Social Media for Financial Information

Social media has grown into a primary source of financial information, particularly among younger adults. With more than six in 10 Americans using social media when looking for financial and insurance information, companies must find ways to stand out in a crowded space where unregulated influencers often compete with licensed professionals.

62% of Americans use social media for financial/insurance information, up from 29% in 2019
Social media usage is strongest among younger adults: 84% of Gen Z; 78% of Millennials
Top platforms: YouTube, Facebook, Instagram (order varies by demographic)
Gen Z trusts “experts/influencers/spokespeople” on social media about as much as family/friends

84%

of Gen Z use social media when seeking information on financial and insurance products and services.

Roll of Financial Professionals

Trust in financial professionals remains a cornerstone of consumer confidence, even as digital tools proliferate. Most Americans say they value professional guidance, but barriers, such as perceived cost and a do-it-yourself mindset, keep some from seeking help from a professional.

78% of adults say they trust financial professionals
43% currently work with one; 94% of those say they are “somewhat” or “very” likely to trust them
Reasons given for not working with a professional: cost (40%), preference to “do it myself” (40%), and “don’t make enough money to need one” (29%)
Desired traits: experience (81%), specialized focus (62%), recommendations from friends/family (54%), empathy/kindness (43%)

94%

of those who work with a financial professional say they trust them.

AI and the Digital Shift

AI tools are now part of the consumer decision-making landscape, with many using them to research or shop for insurance. While some buyers are comfortable completing a life insurance purchase online, most still seek human input at pivotal points.

1 in 4 consumers would complete a life insurance purchase entirely online
Of those who still want human help, they would turn to a professional …
- 18% – very early on in the process
- 24% – early on (not sure of what kind of life insurance is best)
- 36% – after narrowing product type but before deciding amount/price
- 18% – after deciding on type and how much
- 5% – at the very end to wrap up any lingering questions
Over half of respondents reported using AI tools for research (51%) and shopping (55%) but the industry cannot control the accuracy of AI outputs

3 in 4

people say they still want professional help in the life insurance buying process.

Opportunities Await

The convergence of social media, AI and professional guidance creates a moment of risk and possibility. Companies and financial professionals can succeed by producing transparent, relatable digital content; educating about cost but reinforcing value over price; and ensuring compliance does not keep them from competing effectively in the spaces where consumers are already active.

Please source all statistics cited: 2025 Insurance Barometer Study, Life Happens and LIMRA

The full 2025 Insurance Barometer Study is available to Life Happens partner companies and can be accessed here. If you have issues accessing it, please contact partnerships@lifehappens.org. For media inquiries, contact mleyes@lifehappens.org.

Discover more

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

They Don’t Understand Life Insurance and Overestimate Its Cost

by Natalie Chambliss | June 25, 2025

They Don’t Understand Life Insurance and Overestimate Its Cost

It’s an affordable means of financial stability that people think they can’t afford (when most actually can).

What is it? Life insurance.

The 2025 Insurance Barometer Study, research that Life Happens and LIMRA have conducted for 15 years, shows that about three-quarters of adults overestimate the true cost of life insurance.

We’ve asked this question since the study’s inception, but this year we drilled down further. We asked respondents to self-assess their health and then to estimate what a term policy would be for themselves at their current age.* And even the youngest (those 35 and under) and healthiest overestimate what life insurance would cost them by seven to 12 times.

Adults (35 and under) who say they are healthy overestimate the cost of life insurance by 7-12 times.

When you look at why people with a need gap don’t buy life insurance, the most common reason they give is cost (46%). Understanding that this is a consumer perception study, if they have incorrect assumptions about the cost of life insurance, it follows that they think they can’t afford it.

This may come down to education. In fact, 41% of adults say they are only somewhat or not at all knowledgeable about life insurance. If you don’t understand the key qualities of the product, estimating its cost will be difficult. Combatting this misconception means we need to educate people about what life insurance is, what it does, and that it is a means to financial stability that most can afford.

Education and outreach can also help clearly address two of the other most common reasons people give for not having life insurance: unsure of how much and what type to get (22%) and procrastination (21%).

Life Insurance Ownership

Half of American adults (51%) say they own life insurance. They may have it through their employer (26%), a policy they own individually (55%) or a combination of both (19%).

Interestingly, 61% of those who do not have life insurance say they need it. Plus, 19% of those who do have some coverage say they could use more.

In addition, given that this is a consumer perception study, there is likely a percentage of those who do not have life insurance and say they don’t need any who in actuality do have a need for coverage.

Overall, the life insurance need gap means there are about 100 million Americans who are in the market for life insurance.

This need gap is highest among:

Households earning under $50,000 per year
Consumers who identify as Hispanic or Black
All generations younger than Baby Boomers, representing 81 million adults
Women

61%

of those who don’t have life insurance say they need it.

Educate Them Where They Spend Time

The financial services industry has been reticent to use social media channels to reach consumers. However, 62% of all adults—and 80% of those under age 45—use social media to seek information on financial or insurance products. This is up from 29% when this question was first asked in 2019.

Additionally, nearly half of Gen Z and Millennials say they value recommendations from experts, influencers or spokespeople. Of young adults who use social media for financial information, 45% say they follow financial advisors and 33% say they follow financial influencers.

This is an untapped resource for this industry and an important means of guiding and educating a populace that has ingrained misconceptions about life insurance, including it affordability.

The need to educate Americans and help them get the coverage they need is as critical as ever: One in four adult Americans say their household would feel the financial impact of the death of the primary wage earner in one month or less. We have the means to change these statistics through education and offering life insurance solutions that fit their budget.

6 in 10

use social media when seeking info on financial or insurance products.

* They were asked for the cost of a $250,000, 20 year level term life insurance policy. In past years, they were asked to estimate the cost of this policy for a healthy 30 y/o male.

Please source all statistics cited: 2025 Insurance Barometer Study, Life Happens and LIMRA

The full 2025 Insurance Barometer Study is available to Life Happens partner companies and can be accessed here.

If you have issues accessing it, please contact partnerships@lifehappens.org.

For media inquiries, contact mleyes@lifehappens.org.

Discover more

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

“Adulting” Across the Generations

by Natalie Chambliss | September 11, 2024

“Adulting” Across the Generations

image_homepage_Talker_survey_2024_mobile

What does it mean to be an adult, and at what age does it actually happen for people? Life Happens sought the answers through a generational lens, with some surprising results.

Here’s what we found:

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

“Adulting” is hard—and it seems to be getting harder, with 71% of people agreeing that it’s harder to be an adult now than it was 30 years ago. Almost the same number—72%—attributes it to the higher cost of living than ever before.

In fact, being an adult doesn’t automatically start the day you turn 18. Instead, the age when life, money and the future start to feel “real” is 27 years old.

This data comes from the Life Happens survey “Adulthood Across Generations.” It was conducted by Talker Research and polled 2,000 Americans split evenly by generation: 500 each of Gen Z adults, Millennials, Gen Xers and Baby Boomers.

So, how do people define “adulting”? The top two answers were related to finance, with half saying it meant being able to pay their own bills (56%) and being financially independent (45%). In addition, many people said they “felt” like an adult when they moved out of their parents’ home (46%).

42% say adulthood is harder than they anticipated, with 71% saying it's harder than it was 10 years ago.

8 in 10 adult Gen Zers feel pressure to be more ahead financially than they are.

Gen Z Is Making Strides

Interestingly, the age of “feeling” like an adult—age 27—coincides with the age when people started taking finances seriously—around age 28. That said, the older generations admit they wished they’d taken their finances more seriously in their 20s (76%).

And while the oldest of Gen Z is just reaching that age of “adulting,” they are actually on the same page with the older generations with the top three pieces of financial advice they’d share. Here’s the consensus across generations: Start saving early (64%); create a budget (46%) and start building credit as soon as you can (41%).

Gen Z is also ahead of the financial curve, as many are paying their own bills, getting credit cards, learning how to budget and opening savings accounts around age 22—younger than any of the other generations. However, half of Gen Z admit that they have not started contributing to a retirement plan.

So, what financial “adulting” moves does Gen Z feel they cannot afford? Buying a home or apartment tops the list (47%), along with having kids (39%). Plus, more than half (56%) say they have more financial responsibility than they can handle.

People would rather spend $15/month on life insurance (59%) than on a standard Netflix subscription (23%).

Being Financially Prepared

While Americans are hoping that they’ll be financially stable by the age of 46, four in 10 respondents don’t believe they’ll ever achieve financial stability.

When it comes to working with a financial professional, the average age when they first started was 30, but keep in mind that more than half (56%) say they have never taken this step.

There is good news regarding retirement savings: with each generation, the average age when people started contributing to a retirement plan keeps getting younger, giving them a longer time to save and invest. The same can be said for life insurance. The younger generations are purchasing their first policy earlier than previous ones. In addition, four in 10 agree that getting life insurance “makes you an adult,” with more than half of Gen Z saying so (53%).

Age when you	… started saving for retirement	… bought life insurance
Gen Z:	22	22
Millennials:	27	28
Gen X:	31	33
Baby Boomers:	34	34

And some encouraging information: When asked if they would rather use $15/month for life insurance or a Netflix subscription, they all chose life insurance across generations.

View the infographic and animation from this study.

Please source all statistics cited: Adulthood Across Generations, Life Happens, Sept. 2024

Survey methodology: Talker Research surveyed 2,000 Americans split evenly by generation (500 Gen Z, 500 millennials, 500 Gen X and 500 baby boomers); the survey was commissioned by Life Happens and administered and conducted online by Talker Research between August 12 to August 16, 2024 and released on Sept. 11, 2024.

For media inquiries, contact lifehappens@kwtglobal.com.

Discover more

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

Education Is Key to People Getting the Life Insurance They Need

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.

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

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.

72% overestimate the cost of life insurance, but 54% say they used “gut instinct” or a “wild guess” when estimating.

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.

46% of LGBTQ adults say they need life insurance—or more of it.

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.

Millennials expressed the most financial concerns of any generation.

A Generational Shift

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.

Millennials expressed the most financial concerns of any other generation.

28% say they are “very” or “extremely” likely to buy a combination life insurance + long-term care policy.

Combination Products

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.

Please source all statistics: 2024 Insurance Barometer Study, Life Happens and LIMRA

The full 2024 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 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.

Single Parents and the Financial Future

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:

graphic_SWNS_75_percent_overwhelmed_2023_1200x675_branded

graphic_SWNS_dads_moms_69_58_2023_1200x675_branded

Securing the Future

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.

52% of single parents bought life insurance to provide financially for their children if they were to die unexpectedly.

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%

¹U.S. Census Bureau, Nov. 17, 2022
²Pew Research, Dec. 12, 2019

Discover more

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.

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