What Percentage Of The US Population Has Life Insurance

Unless you sell life insurance, statistics about who has insurance and who doesn’t are probably going to be boring, right? Think again. Beyond the numbers themselves, there’s a lot that these bits of data reveal about the state of life insurance in the United States. Here are some important takeaways.

How Many People Are Insured?

According to recent data from Statista, roughly 54 percent of Americans currently have life insurance. This figure includes those who said they purchased a life insurance policy to replace lost income for their families in the event of their death, and individuals who purchased policies to help cover funeral expenses.

It’s a great investment for the individuals who do have life insurance, but that figure still leaves nearly half of the eligible population without a life insurance policy. If they’re so prudent, why is it that so many people are still uninsured?

The Reasons People Neglect Insurance

People don’t buy insurance for many reasons. One of the most common, though, are the costs associated with getting a plan. About two-thirds of the uninsured said that costs were the main factor holding them back, and that includes both the individuals who don’t believe the costs of premiums are worth the expense and the ones who might want insurance but can’t fit it into their budgets.

In addition, there are more than a few people who might be interested in insurance, but find that there are other important life goals they’d prefer to spend their funds on, like retirement savings and long-term investments.

The reasons people forego life insurance aren’t all monetary, mind you. For many, it’s just a matter of buying into myths and prejudices about insurance plans. 

For instance, you’ve likely seen individuals who were confused about how much insurance cost or what insurance life insurance would really be good for. This attitude isn’t isolated to one or two individuals — it’s common across the nation, and something that keeps many from investigating their options.

Some people don’t trust insurance companies to uphold their end of the policy, and as a result feel too paranoid to ever buy one, while others still find death to be an unpleasant topic of discussion (so they avoid everything remotely related, including talking about getting a life insurance policy).

Finally, there are even people who may want insurance but just never get around to taking care of it. There are only so many hours in the day, after all, and when you’re constantly distracted by children, work, and other responsibilities, fitting in time to research might be a stretch.