Top Life Insurance Statistics for 2024 (2024)

FAQs

What are the statistics on life insurance? ›

Key Life Insurance Statistics

A study by the LIMRA and Life Happens shows that in 2023, the percentage of people who reported having life insurance increased to 52%, up from 50% in the previous year. Over the past 12 years, there has been a decrease in overall life insurance ownership, dropping from 63% in 2011.

New York Life Group, Northwestern Mutual Group, and Metropolitan Group topped the list of largest companies in terms of direct premiums written, according to the 2023 Life and Fraternal Insurance Industry Report from the National Association of Insurance Commissioners (NAIC).1 However, bigger doesn't always mean better ...

How much life insurance does the average person have? According to the American Council of Life Insurers, the average size of new individual life insurance policies purchased in 2019 was $178,150 in 2019.

Whether you're trying to choose the right life insurance policy or you're a beneficiary of an existing policy, it's valuable to know the average life insurance payout you might expect in the U.S. Here's what beneficiaries can expect on average: Average payout: $189,000. Time to payout: 30-60 days after filing.

Gen X (ages 44-59) and Baby Boomer (ages 60-78) claim the highest percentage of ownership at 55 percent and 57 percent, respectfully. Millennial and Gen X generations are significantly more likely to own term life insurance when compared to younger and older generations.

Term life insurance is a popular choice for most people because it's affordable, only lasts for as long as you need it, and doesn't come with many tax rules or restrictions.

Life insurance is no longer needed for many people once they reach their 60s or 70s. At this point they retire, their kids have grown up, and they've paid off their mortgage and other debts. However, others prefer to keep life insurance later in life to leave an inheritance and to pay off final expenses.

If you multiply an annual salary of $50,000 by 10, for instance, you'd opt for $500,000 in coverage. Some recommend adding an additional $100,000 in coverage per child above the 10x amount.

Buy 10 times your income, plus $100,000 per child for college expenses. This formula adds another layer to the "10 times income" rule by including additional coverage for your child's education. College and other education expenses are an important component of your life insurance calculation if you have kids.

So, how long do you have to have life insurance before it pays out? If you have, say, a 25-year term life policy, then your loved ones are usually covered for 25 years. If you have an active permanent life policy, the entire death benefit is generally in place during your lifetime.

How long does it take for a beneficiary to receive money from life insurance? ›

In many cases, it takes anywhere from 14 to 60 days for beneficiaries to receive a life insurance payout. But many factors impact this time frame. These include the insurance company's procedures, when the claim is filed, how long the policy was active, the cause of death, and state laws regarding insurance payouts.

A life insurance company is contractually obligated to pay the specified death benefit regardless of when the loved one dies, whether it is four months or forty years after the policy takes effect.

More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

Because policyholders can outlive their policies, there's a chance that the death benefit will never be paid out. In fact, a study done by Penn State University indicates that 99 percent of all term policies never pay out a death benefit.

52% of Americans have a life insurance policy. 30% of Americans say they need life insurance but don't have it yet. More than 100 million Americans are uninsured or underinsured when it comes to life insurance.

The most recent study shows about three-quarters (72%) of Americans overestimate the true cost of a basic term life insurance policy. Younger Americans are likely to think it is three times its actual cost. There are few other products on the market today that consumers overestimate the cost by such a wide margin.