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Life insurance statistics in 2020
Life insurance by the numbers 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 40% • Percent of life insurance policies purchased via captive 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) Sources: Top reasons for buying life insurance in the U.S. 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:
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Life Carriers Cut Age Groups From Coverage
