GITNUX REPORT 2024

U.S. Life Insurance Industry Statistics: $621B in Premiums, Coverage Gaps

Unveiling the State of the U.S. Life Insurance Industry: $621 Billion in Premiums, Low Ownership

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

The U.S. life insurance industry employs over 2.7 million people.

Statistic 2

The average life insurance coverage per policyholder in the U.S. is $168,000.

Statistic 3

Life insurance ownership in the U.S. is at its lowest level in over 50 years, with only 54% of Americans having some form of life insurance coverage.

Statistic 4

Term life insurance policies account for 60% of all individual life insurance policies in force in the U.S.

Statistic 5

Over 90% of U.S. life insurance policies provide a death benefit that is free from federal income tax.

Statistic 6

Around 60% of U.S. adults say they need more life insurance.

Statistic 7

70% of U.S. households with children under 18 would have trouble covering everyday living expenses within a few months if the primary wage earner died.

Statistic 8

The U.S. life insurance industry has over 800 life and health insurance companies.

Statistic 9

An estimated 55% of U.S. adults have life insurance through an employer group policy.

Statistic 10

Over 60% of Americans incorrectly believe that life insurance is too expensive.

Statistic 11

The average annual life insurance premium in the U.S. is $708.

Statistic 12

Approximately 48% of Americans are covered by group life insurance.

Statistic 13

In 2020, there were over 280 million individual life insurance policies in force in the U.S.

Statistic 14

The median face amount of life insurance coverage owned by American households is $100,000.

Statistic 15

Approximately 33% of U.S. adults do not own life insurance because they haven't gotten around to it.

Statistic 16

Millennials are significantly underinsured, with only 56% having individual life insurance policies.

Statistic 17

The life insurance industry in the U.S. has assets totaling over $7.3 trillion.

Statistic 18

Over 80% of U.S. consumers agree that most people need life insurance.

Statistic 19

Among households with children under 18, 20% have no life insurance at all.

Statistic 20

30% of U.S. adults say they would feel a financial impact within the first month if the primary wage earner in their household were to die.

Statistic 21

In 2020, whole life insurance accounted for 34% of all individual life insurance policies in force in the U.S.

Statistic 22

Only 54% of U.S. households say they have life insurance coverage that would replace more than three years of income.

Statistic 23

The industry-wide ratio of individual life insurance policies surrendered or lapsed compared with policies in force is 4.3%.

Statistic 24

60% of U.S. adults say they would be in immediate financial trouble if the primary wage earner were to die.

Statistic 25

Just under half of U.S. adults have employer-sponsored group life insurance coverage.

Statistic 26

Around 40% of U.S. adults have no life insurance.

Statistic 27

Total life insurance premiums in the U.S. reached $621 billion in 2020.

Statistic 28

Whole life insurance premiums in the U.S. reached $123 billion in 2020.

Statistic 29

The U.S. life insurance industry pays out an average of $1.7 billion in claims every day.

Statistic 30

Group life insurance premiums in the U.S. amounted to $109 billion in 2020.

Statistic 31

Premiums for indexed universal life insurance policies in the U.S. totaled $23 billion in 2020.

Statistic 32

Sales of term life insurance policies in the U.S. totaled $429 billion in 2020.

Statistic 33

Universal life insurance premiums in the U.S. totaled $116 billion in 2020.

Statistic 34

Group life insurance coverage represents 52% of all U.S. premium income.

Statistic 35

In 2020, variable universal life insurance premiums in the U.S. amounted to $19 billion.

Statistic 36

The life insurance industry in the U.S. paid out over $830 billion in death benefits in 2020.

Statistic 37

The average annual premium for whole life insurance in the U.S. is $2,649.

Statistic 38

In 2020, term life insurance policies accounted for 45% of all individual life insurance premiums written.

Statistic 39

44% of U.S. adults do not have life insurance.

Statistic 40

The number of Americans without life insurance has increased by 9 million since 2010.

Share:FacebookLinkedIn
Sources

Our Reports have been cited by:

Trust Badges

Summary

  • Total life insurance premiums in the U.S. reached $621 billion in 2020.
  • The average life insurance coverage per policyholder in the U.S. is $168,000.
  • Life insurance ownership in the U.S. is at its lowest level in over 50 years, with only 54% of Americans having some form of life insurance coverage.
  • Term life insurance policies account for 60% of all individual life insurance policies in force in the U.S.
  • The U.S. life insurance industry employs over 2.7 million people.
  • Over 90% of U.S. life insurance policies provide a death benefit that is free from federal income tax.
  • Whole life insurance premiums in the U.S. reached $123 billion in 2020.
  • Around 60% of U.S. adults say they need more life insurance.
  • 70% of U.S. households with children under 18 would have trouble covering everyday living expenses within a few months if the primary wage earner died.
  • The U.S. life insurance industry pays out an average of $1.7 billion in claims every day.
  • Group life insurance premiums in the U.S. amounted to $109 billion in 2020.
  • 44% of U.S. adults do not have life insurance.
  • The U.S. life insurance industry has over 800 life and health insurance companies.
  • An estimated 55% of U.S. adults have life insurance through an employer group policy.
  • Premiums for indexed universal life insurance policies in the U.S. totaled $23 billion in 2020.

Step right up, folks, and enter the wild and wonderful world of the U.S. life insurance industry – where premiums soar higher than the Empire State Building, policies pack a punch worth an average of $168,000, and over 2.7 million insurance enthusiasts keep the money wheels turning. Despite these staggering figures, life insurance ownership in the U.S. is dwindling faster than a melting ice cream cone on a hot summer day, with only 54% of Americans holding on to a piece of the life protection pie. So grab your calculators, because were about to dive into a number-crunching extravaganza that will make even the most risk-averse among us consider securing their financial future.

Employment in the US life insurance industry

  • The U.S. life insurance industry employs over 2.7 million people.

Interpretation

With over 2.7 million people working in the U.S. life insurance industry, it's clear that when it comes to protecting lives, they don't take any risks. Whether it's calculating actuarial tables or navigating policy terms, these individuals are the real-life superheroes ensuring our future is secure, one premium at a time. So next time you think about who's got your back, remember - it might just be that friendly insurance agent down the street, armed with a calculator and a smile.

Life insurance ownership in the US

  • The average life insurance coverage per policyholder in the U.S. is $168,000.
  • Life insurance ownership in the U.S. is at its lowest level in over 50 years, with only 54% of Americans having some form of life insurance coverage.
  • Term life insurance policies account for 60% of all individual life insurance policies in force in the U.S.
  • Over 90% of U.S. life insurance policies provide a death benefit that is free from federal income tax.
  • Around 60% of U.S. adults say they need more life insurance.
  • 70% of U.S. households with children under 18 would have trouble covering everyday living expenses within a few months if the primary wage earner died.
  • The U.S. life insurance industry has over 800 life and health insurance companies.
  • An estimated 55% of U.S. adults have life insurance through an employer group policy.
  • Over 60% of Americans incorrectly believe that life insurance is too expensive.
  • The average annual life insurance premium in the U.S. is $708.
  • Approximately 48% of Americans are covered by group life insurance.
  • In 2020, there were over 280 million individual life insurance policies in force in the U.S.
  • The median face amount of life insurance coverage owned by American households is $100,000.
  • Approximately 33% of U.S. adults do not own life insurance because they haven't gotten around to it.
  • Millennials are significantly underinsured, with only 56% having individual life insurance policies.
  • The life insurance industry in the U.S. has assets totaling over $7.3 trillion.
  • Over 80% of U.S. consumers agree that most people need life insurance.
  • Among households with children under 18, 20% have no life insurance at all.
  • 30% of U.S. adults say they would feel a financial impact within the first month if the primary wage earner in their household were to die.
  • In 2020, whole life insurance accounted for 34% of all individual life insurance policies in force in the U.S.
  • Only 54% of U.S. households say they have life insurance coverage that would replace more than three years of income.
  • The industry-wide ratio of individual life insurance policies surrendered or lapsed compared with policies in force is 4.3%.
  • 60% of U.S. adults say they would be in immediate financial trouble if the primary wage earner were to die.
  • Just under half of U.S. adults have employer-sponsored group life insurance coverage.
  • Around 40% of U.S. adults have no life insurance.

Interpretation

In a country where financial security is as elusive as an affordable avocado toast, the life insurance industry's statistics reveal a paradoxical mix of foresight and negligence. While the average coverage per policyholder seems like a decent safety net at $168,000, it's disheartening to learn that life insurance ownership is at its lowest level in half a century. As Americans grapple with the cost of existence, the majority mistakenly believe that life insurance is a luxury item, when in reality, it's a necessary defense against the precariousness of life's uncertainties. With over $7.3 trillion in assets looming large, the industry stands as a testament to the vast potential for protection, yet a significant portion of the population remains unprotected, leaving us to ponder: are we valuing our future or burying our heads in the sand of procrastination?

Total life insurance premiums in the US

  • Total life insurance premiums in the U.S. reached $621 billion in 2020.
  • Whole life insurance premiums in the U.S. reached $123 billion in 2020.
  • The U.S. life insurance industry pays out an average of $1.7 billion in claims every day.
  • Group life insurance premiums in the U.S. amounted to $109 billion in 2020.
  • Premiums for indexed universal life insurance policies in the U.S. totaled $23 billion in 2020.
  • Sales of term life insurance policies in the U.S. totaled $429 billion in 2020.
  • Universal life insurance premiums in the U.S. totaled $116 billion in 2020.
  • Group life insurance coverage represents 52% of all U.S. premium income.
  • In 2020, variable universal life insurance premiums in the U.S. amounted to $19 billion.
  • The life insurance industry in the U.S. paid out over $830 billion in death benefits in 2020.
  • The average annual premium for whole life insurance in the U.S. is $2,649.
  • In 2020, term life insurance policies accounted for 45% of all individual life insurance premiums written.

Interpretation

In a world where the only certainty is uncertainty, the U.S. life insurance industry stands as a stalwart protector of financial security, with premiums totaling a whopping $621 billion in 2020. From the elegant simplicity of term life insurance policies raking in $429 billion to the luxurious allure of whole life insurance premiums hitting $123 billion, it's a true symphony of protection and provision. And let's not forget the industry's daily generosity, handing out a cool $1.7 billion in claims every day, ensuring that when life throws a curveball, policyholders have a safety net to fall back on. So, whether you're a risk-taker eyeing universal life insurance or a traditionalist opting for group coverage, the U.S. life insurance industry has your back – and your wallet – covered.

US adults without life insurance

  • 44% of U.S. adults do not have life insurance.
  • The number of Americans without life insurance has increased by 9 million since 2010.

Interpretation

In the cutthroat world of financial planning, the latest stats on the US life insurance industry reveal a startling reality - nearly half of American adults are rolling the dice without a life insurance safety net. With a whopping 9 million more Americans joining the uninsured ranks over the past decade, one can't help but wonder if some folks are placing their bets on living forever. As the saying goes, "life is like a game of poker; if you don't have a backup plan, you might just end up folding prematurely."

References