Life insurance is one of
those financial tools many people say they “should” have — but the latest data
suggests many families are still unprotected or underinsured. According to the 2025
Facts About Life Insurance report, published by LIMRA and Life Happens,
significant coverage gaps remain across the U.S.
Let’s dive into the findings and what they mean for consumers and the industry.
Key statistics & trends
- Ownership & coverage gaps
- Just 51% of U.S. adults report owning
life insurance, either individually or through work.
- Around 40% of adults — about 100 million
people — say they need more coverage.
- Among workers, 55% rely on
employer-provided group life insurance.
- Financial vulnerability
- 47% of households say they would struggle financially within
six months if a primary wage earner died.
- 40% say their families would be “barely” or
“not at all” secure in that
scenario.
- Demographic differences
- Men (54%) are slightly more likely than women (48%) to own
coverage.
- Gen Z ownership sits at just 42%, the lowest among generations.
- Ownership is lower among Hispanic and
Black Americans, compared with White and Asian Americans.
- Why people don’t buy life insurance
The main barriers are: - Perceived cost,
- Other financial priorities (bills, debt,
retirement),
- Uncertainty about how much or what type to
buy,
- Belief they wouldn’t qualify.
For
Gen Z, lack of outreach from agents is also a factor.
- Why people do buy
Common reasons for ownership include: - Covering final expenses,
- Protecting income for dependents,
- Paying off mortgages,
- Leaving an inheritance.
- Technology & information sources
- 62% use social media when researching financial products.
- 92% researched online in 2025, up from 71% in 2015.
- About half are open to using AI tools
(e.g., ChatGPT, Gemini, Copilot) to explore options.
- Still, 40% want professional guidance
early in the process.
Why these gaps matter
Without sufficient life
insurance, many families face financial risk if a wage earner passes away. The LIMRA
& Life Happens 2025 report shows these vulnerabilities
disproportionately affect younger generations, women, and communities of color.
At the same time, the rise
of digital research, accelerated underwriting, and AI tools suggests the
industry must adapt to consumer expectations for speed, transparency, and
convenience.
What consumers can do
- Assess needs honestly: Calculate living costs, debts, and how long
dependents would need support.
- Understand policy types: Term, whole, and hybrid options vary widely.
- Use both digital tools and human advice: Online calculators are helpful, but
professional input ensures accuracy.
- Stay updated: Tech and products evolve — revisit your coverage as life
changes.
Industry takeaways
For insurers and advisors,
the report highlights opportunities:
- Proactively reach underinsured groups
(Gen Z, Hispanic and Black Americans).
- Offer simplified or accelerated underwriting to reduce friction.
- Combine tech + human guidance for
education and trust-building.
- Use social media for genuine financial education, not just
ads.
Conclusion
The 2025 Facts About
Life Insurance report by LIMRA and Life Happens makes one thing clear: many
Americans are still under protected, but technology and education can help
close the gap. For individuals, the takeaway is simply: review your coverage, speak
with a financial professional, and make sure life insurance is part of your
financial foundation.
Source
2025 Facts About Life Insurance
(LIMRA & Life Happens, PDF)
