Life insurance statistics

Stats about who has life insurance and why

57%

Percent of American adults who have life insurance^‡

32%

Of American adults with life insurance, the percent who only have group coverage — which usually isn’t enough (and is rarely portable)^‡

Income replacement

The most common reason for purchasing life insurance (44%), followed by burial expenses and wealth transfer (35% each)^‡

10x to 12x

The multiples of your annual income that most financial advisors recommend you need when buying life insurance for income replacement^†

50%

Percent of life insurance policies are purchased via independent agents (like Policygenius advisors, who are not beholden to any one insurance company)

40%

Percent of life insurance policies purchased via affiliated agents (meaning they only sell products for one insurance company)^‡

Stats about the cost of life insurance

6x-10x

How much more permanent life insurance (like whole life insurance) costs vs. term life insurance^†

8%

Average percent increase in your insurance costs as you age, assuming your health stays the same^†

30%

The average cost difference between sequential health ratings (preferred vs standard, for example)^†

2x to 3x

How much rates for smokers cost vs. rates for nonsmokers (but a year after you quit smoking, most companies will offer you nonsmoker rates)^†

50%

The average difference between the least expensive and most expensive rate for the same person across insurance companies^†

30%

Percent difference between premiums for men and women(with women paying nearly ⅓ less than men, on average)^†

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Sources

^†Policygenius data

^‡2019 Insurance Barometer Study, Life Happens and LIMRA