2017 Life Insurance Statistics
The Insurance Barometer is an annual study that has been undertaken since 2011. It aims to track consumer behaviour, attitudes and perceptions in the United States. It aims to understand their concerns and how they think and act with regard to financial products with a focus on life insurance.
The key findings from this survey relating directly to life insurance are shown below.
1) People see the need for life insurance, particularly for parents with young children. Eight in 10 say that a married person with one or more young children needs life insurance.
2) Consumer demand for life insurance is greater than actual ownership. Seventy percent say they need life insurance, yet only 59 percent own life insurance. These numbers also align for disability and long term care insurance.
3) Life insurance owners are more interested in other financial products. People who have taken out life coverage own between four and five additional insurance products.
4) More people are using life insurance as a way to save for retirement. Retirement planning is currently a top 5 reason for owning life insurance.
5) The need for more life insurance coverage remains. Over 20 percent of life insurance owners say they don’t have enough coverage.
6) People wish their spouses or partners had more life insurance. Just under 40% of people who answered stated they wised their spouses or partners had more life coverage.
7) People recognize their own dependence on a financial wage earner. A little under 70% suggested there would have trouble with their living expenses if they were to lose the primary wage earner.
8) Brand image matters. The purchase of life insurance from a well known brand was cited by almost two thirds of respondents as being an important factor.
9) Online purchase attempts are increasing. Since the first barometer in 2011 online purchase attempts have tripled.
10) Simplified underwriting is appealing to consumers. 70% have indicated they would likely purchase life insurance where priced without a medical exam.
11) Millennials overestimate the cost of life insurance. As much as 40% believe the cost of a term life policy costs five times the actual cost.
The findings align with other surveys in that people recognise the need for life insurance, but do not always take the time to take out a policy to protect themselves or their loved ones.