Life insurance statistics in 2023

Getting a life insurance policy is an important decision that you want to put a lot of thought into — it protects your family's financial security if you die unexpectedly. Because you're relying on your policy to protect your loved ones, you want to make sure you understand both the basics and the nitty-gritty of your coverage.

We've done the research so you don't have to: From how much life insurance costs to the biggest reasons to get it — we have answers to all your questions.

Life insurance by the numbers

52% • Percent of American adults who have life insurance [1]

27% • Of American adults with life insurance, the percent who only have group coverage — which usually isn’t enough (and rarely stays with you if you leave your job) [2]

31% • Percent of consumers say they are more likely to buy because of the ongoing COVID-19 pandemic

10 to 15 times • The multiples of your annual income that most financial advisors recommend you need when buying life insurance for income replacement

29% • Percent of American adults who intend to buy their life insurance online

40% • Percent of insured who wish they had purchased their policies at a younger age

11% • Percent difference between life insurance ownership for women compared to men

$3.29 trillion • Face amount of life insurance policy purchases in the United States [3]

Stats about the cost of life insurance

5 to 15 times • How much more permanent life insurance (like whole life insurance) costs vs. term life insurance

4.5% to 9% • Average percent increase in your insurance costs as you age, assuming your health stays the same

23% • The average cost difference between sequential health ratings (Preferred vs. Standard, for example)

2 to 3 times • How much rates for smokers cost vs. rates for non-smokers (but a year after you quit smoking, most companies will offer you non-smoker rates

39.6% • The average difference between the least expensive and most expensive rate for the same person across insurance companies, based on Policygenius data

24% • Percent difference between premiums for men and women (with women paying nearly 1/4 less than men, on average)

Best life insurance companies ranked by customer satisfaction

When you’re working with an insurer to secure a life insurance policy, customer experience matters. After all, you’re trusting it to provide a payout to your loved ones if something happens to you. According to J.D. Power, these are the top 10 life insurance companies for customer satisfaction with their corresponding scores on a 1,000-point scale. [4]

Company	J.D. Power rating
State Farm	822
Nationwide	813
Northwestern Mutual	807
Pacific Life	801
Mutual of Omaha	795
Globe Life	788
MassMutual	782
John Hancock	781
New York Life	777
Principal Financial	776

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Average cost of life insurance by age and gender

The monthly cost of a life insurance policy depends on unique factors like your age, health, term length, gender, and the death benefit amount on the policy. The following are sample monthly premiums for a 20-year term life insurance policy for a non-smoker.

Age	Sex	$250,000	$500,000	$1,000,000
25	Female	$14.17	$21.06	$33.45
	Male	$17.11	$26.89	$44.62
35	Female	$16.39	$25.43	$42.49
	Male	$18.58	$30.14	$51.51
45	Female	$28.31	$47.71	$86.45
	Male	$35.11	$60.58	$112.52
55	Female	$59.80	$108.44	$207.17
	Male	$82.80	$150.39	$282.99

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Methodology: Average monthly estimated rates for male and female non-smokers in a Preferred health classification with a 20-year term length. Rates are based on the monthly Policygenius Life Insurance Price Index. Prices in the index are determined by internal actuarial rate tables for life insurance carriers that offer policies through the Policygenius marketplace: AIG, Banner Life, Brighthouse, Lincoln Financial, Foresters Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, SBLI, Symetra, and Transamerica. Illustration valid as of 02/01/2023.

Top reasons for buying life insurance in the U.S.

According to a 2020 report from trade research organization LIMRA and the non-profit organization Life Happens, these are the most common reasons Americans said they bought life insurance:

• 84% Burial/final expenses

• 66% Wealth transfer

• 62% Income replacement

• 57% Supplement retirement income

• 50% Pay off mortgage

Life insurance coverage by state

According to data from the NAIC, published by the American Council of Life Insurers, here is the cumulative value of the death benefits for the life insurance policies purchased in every U.S. state in 2018, in billions of U.S. dollars. [5]

State	Amount of coverage purchased (in billions of U.S.dollars)
Alabama	39.35
Alaska	7.36
Arizona	49.80
Arkansas	20.57
California	356.98
Colorado	58.26
Connecticut	42.35
Delaware	21.50
District of Columbia	10.59
Florida	188.85
Georgia	110.82
Hawaii	11.13
Idaho	12.88
Illinois	135.54
Indiana	48.87
Iowa	30.28
Kansas	26.55
Kentucky	34.21
Louisiana	47.66
Maine	8.31
Maryland	63.33
Massachusetts	91.68
Michigan	77.88
Minnesota	54.92
Mississippi	22.95
Missouri	55.01
Montana	7.40
Nebraska	18.60
Nevada	23.84
New Hampshire	12.63
New Jersey	121.35
New Mexico	11.52
New York	218.55
North Carolina	101.19
North Dakota	7.70
Ohio	107.83
Oklahoma	27.73
Oregon	31.36
Pennsylvania	121.21
Rhode Island	8.37
South Carolina	51.11
South Dakota	13.31
Tennessee	66.40
Texas	275.72
Utah	34.38
Vermont	7.91
Virginia	85.61
Washington	63.55
West Virginia	8.88
Wisconsin	75.73
Wyoming	4.59

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Biggest life insurance companies by market share

According to the National Association of Insurance Commissioners, these are the 10 largest life insurance companies in the U.S. and Canada, by their share of the total market. [6]

Company	Market share
New York Life	6.75%
Northwestern Mutual	6.52%
MetLife (Metropolitan Group)	6.05%
Prudential	5.80%
Lincoln Financial	4.83%
MassMutual	4.57%
State Farm	2.87%
Transamerica (AEGON)	2.80%
John Hancock	2.73%
Minnesota Life (Securian)	2.70%

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Percent of U.S. adults with life insurance (2011 to 2021)

According to the 2021 LIMRA and Life Happens report on life insurance in the U.S., the percent of U.S. adults who own life insurance has ranged between 63% and 52%.

Year	Percent of U.S. adults who owned life insurance
2011	63%
2012	59%
2013	62%
2014	57%
2015	57%
2016	60%
2017	59%
2018	59%
2019	57%
2020	54%
2021	52%

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Number of life insurance policies purchased in the U.S. from 1998 to 2018

According to the NAIC, here’s the number of life insurance policies purchased in the U.S. each year from 1998 to 2018. [7]

Year	Number of life insurance policies purchased
1998	31.89 million
1999	38.58 million
2000	33.36 million
2001	40.1 million
2002	38.71 million
2003	35.77 million
2004	38.45 million
2005	34.52 million
2006	29.29 million
2007	30.79 million
2008	28.6 million
2009	29.19 million
2010	28.62 million
2011	27.18 million
2012	27.06 million
2013	25.26 million
2014	27.15 million
2015	28.32 million
2016	27.52 million
2017	28.04 million
2018	27.80 million

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