The Growing Need for Life Insurance in 2024: Addressing the Coverage Gap

I recently learned that life insurance ownership is on the decline, yet the need for it is higher than ever. Can you believe that only 51% of consumers reported owning life insurance as of January 2024? That’s a significant drop from 63% in 2011. What’s even more eye-opening is that 42% of American adults—about 102 million people—say they need life insurance or more coverage than they currently have.

One thing that stood out to me is the misconception about the cost of life insurance. Did you know that 72% of people overestimate how much it costs? This misunderstanding often holds people back from taking those important steps to protect their families and their futures. I’ve found that once you sit down with a trusted advisor, you can really clear up these misconceptions and find a policy that fits both your needs and your budget.

Here’s a thought: Who do you think needs life insurance the most? It turns out that Black and Hispanic Americans have a higher need for coverage—49% of Black Americans and 53% of Hispanics report needing more protection. And there’s also a gender gap to consider: only 46% of women own life insurance compared to 57% of men. Almost half of the women surveyed (45%) recognize they have a coverage gap and plan to address it within the year.

If you're one of those who feels you need more coverage or aren’t sure about the costs, I encourage you to take a step forward. Talking with someone who knows the ins and outs of life insurance can really make a difference. Protecting your loved ones is too important to put off due to misunderstandings.

I'd love to hear your thoughts—do you feel like there’s a coverage gap in your life? What concerns do you have about life insurance?

(Source: 2024 Insurance Barometer Study LIMRA and Life Happens)