How Many Americans Have Life Insurance? Plus Over 35 Life Insurance Statistics (May 2024)

Written By Licensed Agent Sa ElFebruary 4, 2023

Over half of all Americans (54%) have a life insurance policy. However, 30 million of them are underinsured, and some 41 million individuals have no coverage at all.  However, with technology-focused insurance products like no medical exam life insurance; there has never been an easier and faster way for Americans to obtain life insurance.  This article will look at some key life insurance stats to figure out how to get more people insured and if the new way of buying life insurance will help increase the amount of people covered.

Top Life Insurance Statistics:

  • 54% of Americans have some type of life insurance.
  • Over 30 million people in the United States are underinsured.
  • 63% of individuals think they can't afford life insurance
  • The overall asset base of the life insurance industry is $9 trillion.
  • Premiums for men average 12% higher than those for women.
  • 41 million consumers say they need life insurance but don't have it.
  • The average cost of life insurance is $631 per year or about $53 per month.
  • 50% of people overestimate the cost of term life insurance. Millennials, in particular, overestimate the cost by 213%.
  • The average life insurance payout for 2021 was around $618,000.
  • The average cost of no medical exam life insurance is $810 per year or about $68 per month.
  • In the United States, customers who like to buy insurance online has grown from 17% in 2011 to 29% in 2020

Life Insurance Ownership Statistics

How Many Americans Have Life Insurance?


As of 2021, 54% of Americans have life insurance. Over half of life insurance owners also had some other kind of life insurance policy besides their primary life policy. COVID-19 was a leading factor in the 2% overall industry growth due to people applying for life insurance protection against the pandemic.

How Many Americans Have Term Life Insurance?


In 2019, 71% of consumers who owned life insurance had a term life policy, up from 63% in 2017. Whether customers preferred simplified issue life insurance or a no medical exam life insurance policy, term life insurance Was far more popular than permanent life insurance among consumers.

How Many Americans Have Whole Life Insurance?


Only 30% of permanent insurance policies purchased in 2019 were whole life, as opposed to 57 percent in 2017. Variable life policies have grown in popularity, accounting for 32% of all permanent insurance purchased in 2019.

How Many Americans Are Underinsured For Life Insurance?


As of 2021, some 30 million households in America are underinsured. Even though 54% of Americans have life insurance, only half (90 Million) of them have enough coverage. That means about 75% of American families will struggle to pay bills associated with funeral costs, final expenses, and other expenditures if the insured passes away without enough coverage for everything.

How Many Americans Don't Have Life Insurance?


Approximately 41 million people claim to need life coverage but do not have it. This is because most individuals are not looking to acquire life insurance as a priority purchase. Furthermore, the typical consumer thinks they cannot afford it.

How Do People In The U.S. Prefer To Buy Life Insurance?


Most Americans have chosen to obtain life insurance from a professional or adviser in person in the past. In 2011, 64% of customers stated they wanted to buy in person; by 2020, only 41% would choose this method. It is not surprising that the desire for online purchasing rose from 17% in 2011 to 29% in 2020. Because of the coronavirus epidemic, we should anticipate an even higher proportion of consumers wanting to buy online in the future.

Life Insurance Coverage By State


California ($452bn), Texas ($291bn), New York ($224bn), Florida ($190bn), and Illinois ($140bn) are the states with the most life insurance coverage in the U.S. According to data published by the American Council of Life Insurers, and Vermont ($4bn), Wyoming ($5bn), Alaska ($7bn), Montana($7bn), and Rhode Island ($7bn) are the states with the least amount of coverage. We have also included the total value of death benefits for life insurance policies purchased in every U.S. state in 2020, expressed as billions of US dollars below.

STATE

Amount of insurance purchased (in billions of U.S.dollars)

Alabama

$42

Alaska

$7

Arizona

$59

Arkansas

$21

California

$452

Colorado

$58

Connecticut

$56

Delaware

$37

District Of Columbia

$24

Florida

$190

Georgia

$131

Hawaii

$12

Idaho

$12

Illinois

$140

Indiana

$52

Iowa

$27

Kansas

$26

Kentucky

$40

Louisiana

$45

Maine

$9

Maryland

$59

Massachusetts

$81

Michigan

$83

Minnesota

$63

Mississippi

$23

Missouri

$65

Montana

$7

Nebraska

$19

Nevada

$23

New Hampshire

$11

New Jersey

$111

New Mexico

$10

New York

$224

North Carolina

$98

North Dakota

$8

Ohio

$112

Oklahoma

$29

Oregon

$25

Pennsylvania

$122

Rhode Island

$7

South Carolina

$44

South Dakota

$10

Tennessee

$82

Texas

$291

Utah

$36

Vermont

$4

Virginia

$81

Washington

$70

West Virginia

$8

Wisconsin

$55

Wyoming

$5

2021 Life Insurance Costs Statistics

What Is The Average Cost Of Life Insurance?  


The average annual cost of life insurance is $631, which works out to about $53 per month. This amount is determined by a variety of criteria, including coverage selected and term length. However, your premiums can be considerably higher or lower depending on your age, gender, smoking habits, and general health.

What Percent Of People Think They Can't Afford Life Insurance?


63% of people think they can't afford life insurance, and 50% overestimate its cost. Millennials, in particular, overestimate the cost by 213%, and they tend to be uninsured at a rate of about 40%.

What Is The Average Cost Of Life Insurance By State?


STATE

AVERAGE ANNUAL PREMIUM

STATE

AVERAGE ANNUAL PREMIUM

$602

$601

$655

$603

$615

$607

$584

$708

$668

$732

$645

$588

$724

New York

$675

$657

$617

$636

$603

$627

$599

$630

$598

$687

$627

$597

$658

$631

$660

$593

$615

$601

$591

$601

$609

$599

$633

$597

$636

$641

$655

$712

$682

$718

$655

$610

$590

$639

$607

$581

$601

$590



What Is The Average Cost Of No Medical Exam Life Insurance By State?


STATE

AVERAGE MONTHLY PREMIUM