Life Insurance Study Overview

For the past ten years, Life Happens and LIMRA have collaborated on the annual Insurance Barometer Study to analyze consumers’ financial behaviors. The latest study, conducted in January 2020 before the COVID-19 pandemic, provides insights into life insurance trends and related financial concerns.

Importance of Life Insurance

Life insurance serves as a crucial safety net for families in times of unexpected events. Unfortunately, many individuals only realize its significance when it’s too late.

The Insurance Ownership Gap

Before the pandemic, a significant portion (46%) of U.S. adults did not have life insurance coverage. While 36% expressed their intention to purchase life insurance within the next year, the impact of COVID-19 highlighted the lack of preparedness among many individuals. The absence of life insurance could exacerbate the financial strain faced by Americans, with a considerable percentage (44%) admitting they would face financial difficulties within six months of losing the primary breadwinner.

Decline in Ownership

This year, the ownership of life insurance declined among households in the lower and middle-income brackets (i.e., under $100,000), dropping by 25% over the past decade. For those who do own life insurance, the primary reasons include: