Cost & Coverage
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Stats to help you understand life insurance — who has it and how much it costs.
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)‡
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)‡
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)†
When you’re working with an insurance company to secure a life insurance policy, customer experience matters. After all, you’re trusting them to care for your loved ones if something happens to you. According to the J.D. Power 2019 Life Insurance Study, here are the top ten life insurance companies for customer satisfaction, with their corresponding scores on a 1,000 point scale.
|COMPANY NAME||CUSTOMER SATISFACTION SCORE|
|Mutual of Omaha||795|
|New York Life||770|
The monthly cost of a life insurance policy depends on factors like your age, health, term length, gender and the death benefit amount on the policy. The following are sample monthly premium rates for a 20-year term life insurance policy for a non-smoker in 2020, based on Preferred health ratings.
According to a 2019 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:
37% Income replacement
30% Burial/final expenses
28% Wealth transfer
27% Pay off mortgage
19% Replaced a policy
17% Tax advantaged save/invest
14% Estate taxes/liquidity
14% Funds for college education
13% Charitable gift
8% Supplement group coverage
8% Business purposes
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 2017, in billions of U.S. dollars.
|State||Amount of coverage purchased (in billions of U.S.dollars)|
|District of Columbia||9.95|
According to the National Association of Insurance Commissioners, these are the ten largest life insurance companies in the U.S. and Canada, by their share of the total market.
|Company Name||Market Share|
|New York Life||5.63%|
According to the 2019 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 57%.
|Year||Percent of U.S. adults who owned life insurance|
According to the NAIC, here’s the number of life insurance policies purchased in the U.S. each year from 1998 to 2017.
|Year||Number of life insurance policies purchased|
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Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
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