The COVID-19 pandemic highlighted the fragility of life and the need to protect the ones we love. According to LIMRA research, 31% of Americans say they are more likely to buy life insurance as a result of COVID-19. This percentage is even higher across many demographics, including millennials (44%), Black Americans (38%) and Hispanics (37%).
The good news is that we saw this interest translate into record-high life insurance sales in 2021. The not-so-good news is that we’re seeing early declines in sales in 2022 that have the potential to reverse a lot of that traction. Our research shows that just half of American adults have any life insurance coverage, a notable decline from 63% only a decade ago.
Our research also shows that people who own life insurance are more likely to feel financially secure. Nearly two-thirds of insured Americans say they feel financially secure, compared with less than half of those who are uninsured.
Overall, 41% of Americans say they don’t have sufficient life insurance coverage. But when you drill down, many underserved markets have greater insurance needs.
» 44% of women believe they have a life insurance coverage gap.
» 45% of Asian Americans say they need more coverage.
» 47% of millennials live with a life insurance coverage gap.
» 48% of Black Americans acknowledge they don’t have enough life insurance.
» 50% of LGBTQ Americans say they need (or need more) coverage.
If a loved one should pass away, here’s who’s at risk: nearly 56 million women, 8.8 million Asian Americans, 20 million Black Americans, 12.4 million LGBTQ Americans and 34 million millennials.
In the 2022 Insurance Barometer Study, conducted by LIMRA and Life Happens, 4 in 10 families say they would face financial hardship within six months if the primary wage earner died. For 1 in 5, it would be within just one month.
Because September marks Life Insurance Awareness Month, it’s the perfect time to engage and educate consumers about the importance of life insurance. Connecting with consumers where and how they want is essential. Information, education and holistic financial planning are key to ensuring all Americans are aware of the importance of — and the need to own — life insurance.
This is why we created our Help Protect Our Families campaign. Now in its second year, the campaign, which brings us together with seven other trade associations and 76 life insurance carriers and distributors, is designed to help our members improve their reach to uninsured and underinsured Americans.
Each month, we share insights about key segments of underserved markets to highlight the disconnect between consumer interest in and purchase of life insurance.
We at LIMRA and LOMA will continue to partner with our members to minimize the number of uninsured and underinsured Americans. As an industry, we have a wonderful opportunity to help more individuals get the coverage they need to protect the ones they love.