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