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Statistics of Life Insurance in USA

By March 21st, 2023No Comments

Statistics of Life Insurance in the USA

The United States is the most significant insurance demand in the world now, with Japan and China being the second and third-biggest markets, respectively.

The United States insurance industry considers for nearly 30% of the whole amount of premiums recorded in the world, which gives the sort of impact this industry has on the country’s market.

In this post, we will get a comprehensive look at the United States life insurance statistics, what

Americans consider life insurance, the usage of technology by life insurance firms, and how the business expected to shaped by rising trends in the future.

The United States Insurance Industry in Numbers

  • As of 2017, there were 5,954 insurance firms in the nation, out of which 2,509 were casualty insurers, 907 were wellness insurers, and 852 were life insurers and annuity.
  • The whole quantity of premiums recorded by United States insurers reached $1.2 trillion in 2017, out of which 52% of the premiums recorded by health and life insurance providers.
  • Insurance similar activities made over $600 billion and estimated for 3.1% of the nation’s GDP.
  • The total estimate of people used by the United States insurance manufacturers in 2017 was 2.7 million, out of which insurance firms immediately employed 1.5 million characters, and the remaining characters engaged through brokering services, agencies, and other such enterprises.
  • The entire cost of premium taxes given by insurance firms in 2017 was $21 billion.

Logic to Purchase Life Insurance Coverage

Data of LIMRA’s 2018 Insurance Barometer research explains that approximately 60% of somebody in the United States has life insurance. 45% of the bodies have different life insurance, 33% of the personalities have combination life insurance, and 22% have both people as excellent as group life insurance.

Researches also explain that one in three families might not be ready to satisfy their day-to-day costs within a period of the primary breadwinner’s release. It goes to prove the quality of life insurance – unusually for working-class and middle-class families.

The overall agreement among Americans is that life insurance is far more critical for a wedded person than it is for a person, even if they both appear from the related financial background.

So, the massive majority of the characters are of the view that the primary breadwinner in a family should be enough insured.

The various common cause cited by Americans for purchasing a life insurance strategy is to cover their final values. Nearly 91% of the personalities believe that a plan that covers funeral costs is undoubtedly required.

Other fundamental reasons for purchasing life insurance include:

  • To replace the revenue of the primary wage earner
  • The Difficulty of Unfinished Life Insurance Coverage

Despite the point that the United States life insurance management is the highest in the world, almost 40% of the country’s state does not have life insurance.

Research shows that the coverage gap in the nation (entire quantity of life insurance coverage needed minus surviving life insurance coverage) calculated at $15 trillion, which is a humongous cost.

Between the 60% of the people with life insurance, one out of five bodies believe that they are not enough guaranteed. At the equal time, they do not have a bright concept as to how much coverage they want.

Among married couples, nearly 33% consider that their partner or spouse should also purchase life insurance coverage. 16% of them do not still understand how important life insurance coverage their spouse or partner has.

The new spot is that these numbers change from one demographic group to another. For instance, 21% of Boomers consider that their partner or spouse should purchase more coverage, and 9% of them do not understand how much coverage their partner or spouse has. The numbers are significantly more expensive for Millennials and Gen Xers.

Nearly 36% of Gen Xers believe that their partner or spouse should purchase more coverage, and 19% of them do not understand how vital coverage their spouse has. For Millennials, the estimates are 42% and 22%, respectively.

Reasons for Not Buying Life Insurance


Cost is the number one logic cited by Americans for not purchasing life insurance. Nearly 63% of people understand that life insurance is also costly, and they cannot allow it.

A significant percentage of millennials greatly exceed the value of term life insurance, externally actually preparing any analysis or discussing to finance experts.

If asked about the average price of a $250,000 term life strategy for a 30-year-old people. Millennials answered in the following way.

  • 44% of millennials believe that the plan is likely to price more than $1,000 a year.
  • 17% of millennials believe that the plan is likely to price anywhere from $500 to $1,000.
  • 13% of millennials believe that the plan is likely to price anywhere from $300 to $500.

The accuracy, however, is that the average price of a $250,000 term life plan from a top-rated life insurance firm is just around $160. Produced you qualify for the preferred plus chance class.

As you can observe from the numbers listed before. People manage to overvalue the price of life insurance by an extensive margin. That looks at an especially persistent difficulty with millennials, who have extremely powerful misconceptions regarding life insurance in general.

Financial Priorities

Apart from the price, this is the most crucial reason why numerous people are reluctant to purchase life insurance. Approximately 61% of people declare that they have essential financial trusts, which stops them from buying life insurance coverage.

The several joint economic liabilities cited by somebody who does not have life insurance posted below.

  • living costs (utilities, groceries, rent, mortgage, and so on)
  • Additional living expenses (internet, phone, cable, and so on)
  • Savings
  • Mortgage repayments (personal loans and credit cards)
  • Health costs
  • Recreational values (shopping, vacations, movies, eating out, and so on)

Among these personalities, Gen Xers and Millennials manage to prioritize savings and mortgage control over life insurance.

Not Understanding Enough regarding Life Insurance

That is one of the motives why several people, Millennial, in particular, do not purchase life insurance. Almost 58% of Millennials, 39% of Gen Xers, and 29% of Boomers state. They have no opinion as to how much life insurance they want or what variety of policies they should purchase.

Thinking They Would Not Qualify for Coverage

That is primarily an extension of the first factor. A surprisingly massive number of characters mistakenly think that they would not fit for a life insurance strategy. Data explains that 38% of Millennials, 19% of Gen Xers.  16% of Boomers think that they are incredible to fit for a life insurance strategy.

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