Facts About Life Insurance: Must-Know Statistics in 2023

There are three main trends in the life insurance industry in 2023; younger generations are shopping for life insurance for the first time; there is an increase in single mothers needing coverage; and fewer companies are reporting COVID-19-related mortalities.

Gen Z adults and millennials are reaching life events — like getting married, starting careers and having children. These events can make them consider life insurance coverage. 44% of Gen Z adults and 50% of millennials intend to buy life insurance coverage by 2024. Gen Z and Millennials prefer to buy life insurance online, with assistance from a financial professional or through their work.

The number of single-mother households has increased by 40% since 1980. Single mothers are now a key market to consider life insurance coverage. 38% of single mothers intend to purchase a life insurance policy in 2023, according to LIMRA.

In addition, in 2023, S&P Global predicts mortality risk will continue to improve and life insurance companies should no longer experience claims related to COVID-19.

The average cost of life insurance varies depending on your age, health, sex and the type of insurance you’re looking for. For example, term life coverage will be more affordable than whole or permanent life insurance.

No matter which type of policy you sign up for, you’ll have to pay a life insurance premium each month to keep the coverage. Look at average life insurance rates by age to get an idea of how much you may pay per month.

*These quotes are based on a healthy woman looking for $1 million of coverage for 20 years. If you want less coverage, expect lower premiums.

Anticipate permanent life insurance premiums to be over $100 each month. For instance, on average, a healthy 40-year-old woman can get a permanent universal policy with $1 million in coverage for $578.85 a month, according to U.S. News.

Data from Statista shows an overall average life insurance payout in the U.S. of $168,000. However, keep in mind that every insurance company will likely have different averages for life insurance based on their location and typical customer demographic.

For example, in California, the average life insurance death benefit is $276,000; in Alabama, the average death benefit is $64,000. Use The American Council of Life Insurers 2023 report to help determine what a payout could look like in your state.

Your payout value, or face amount, is the sum of money that will be paid to your beneficiaries if you pass away, so it’s important to determine how much you’ll want to leave behind. Maybe it will only be around $168,000, or maybe you’d rather leave closer to $1 million. Whatever you decide, make sure it’s right for your family and circumstances.

52% of adults report owning life insurance in 2023, according to LIRMA. In the same study, statistics were calculated on life insurance ownership by generation and parenthood.

While life insurance companies account for different market shares, the same is true for individual states. States with larger populations typically have more active life insurance policies compared to states with a smaller population.

*Note that while this information was published in the ACLI’s 2023 report, the information is from 2021.

According to the most recent information from the Insurance Information Institute, life insurance death benefits and claims for 2022 totaled $797.7 billion – over a $50 billion increase from 2020. Of that total, Americans collected over $88 billion from death benefits alone.

Market capitalization is the total value of a company traded on the stock market. Companies with a large capitalization (often $10 billion or more) are more established and well known.

According to Statista, MetLife is the largest life insurance company in the U.S. based on their market capitalization of $42.4 billion, as of May 2023.

Other leading companies with a high market cap are American International Group(AIG), Prudential Financial and Aflac.

When shopping for life insurance, it’s easy to be bombarded with information. Knowing what’s fact and fiction can help you make an informed decision about your life insurance policy.

There are important benefits to having one of the many different types of life insurance, such as the peace of mind knowing that your family will be taken care of. However, there are also other types of insurance you can consider to make sure you’re prepared for any emergency.

Other insurance plans include health coverage, renters or homeowners insurance, dental insurance and car insurance. In addition, if you’re 65 or older, you can benefit from government-sponsored health coverage, otherwise known as Medicare.

Purchasing a life insurance policy is one of the best ways to protect your family in case something were to happen to you. It’s also an essential part of any healthy retirement plan. If you have additional questions about different policies, talk with a life insurance expert to learn more.

Editor Malori Malone contributed to this article.