Many Americans Know the Basics of Life Insurance, Yet Nearly 60% Either Don’t Have Coverage or Are Unsure If They Do
Corebridge Financial's new research reveals a significant life insurance coverage gap among Americans, with nearly 60% either lacking coverage or unsure about their status. Despite a good understanding of key principles, misunderstandings about cost contribute to this gap. While 80% recognize that buying young is most affordable, 45% of those without coverage cite cost as the primary deterrent. Only 11% correctly identified the typical monthly cost for a healthy 30-year-old's term policy.
The study also found that family influence plays a important role in life insurance adoption. Americans demonstrate strong knowledge in areas like policy conversion, living benefits, and legacy planning. However, there's room for improvement in understanding the differences between term and permanent life insurance. The research highlights the importance of Life Insurance Awareness Month in educating people about the broad range of benefits life insurance can offer beyond death benefits.
La nuova ricerca di Corebridge Financial rivela un significativo gap nella copertura dell'assicurazione sulla vita tra gli americani, con quasi il 60% che manca di copertura o non è sicuro del proprio stato. Nonostante una buona comprensione dei principi chiave, malintesi sui costi contribuiscono a questo divario. Sebbene l'80% riconosca che acquistare quando si è giovani è più conveniente, il 45% di coloro che non hanno copertura cita il costo come il principale deterrente. Solo l'11% ha identificato correttamente il costo mensile tipico per una polizza termale di un trentenne sano.
Lo studio ha anche trovato che l'influenza familiare gioca un ruolo importante nell'adozione dell'assicurazione sulla vita. Gli americani mostrano una forte conoscenza in aree come la conversione delle polizze, i benefici vitali e la pianificazione dell'eredità. Tuttavia, c'è spazio per migliorare nella comprensione delle differenze tra l'assicurazione sulla vita temporanea e quella permanente. La ricerca sottolinea l'importanza del mese della consapevolezza sull'assicurazione sulla vita nell'informare le persone riguardo all'ampia gamma di benefici che l'assicurazione sulla vita può offrire oltre ai benefici per la morte.
La nueva investigación de Corebridge Financial revela una brecha significativa en la cobertura de seguro de vida entre los estadounidenses, con casi el 60% que carece de cobertura o no está seguro de su estado. A pesar de una buena comprensión de los principios clave, los malentendidos sobre el costo contribuyen a esta brecha. Mientras que el 80% reconoce que comprar a una edad joven es lo más asequible, el 45% de aquellos sin cobertura cita el costo como el principal obstáculo. Solo el 11% identificó correctamente el costo mensual típico de una póliza temporal para un hombre sano de 30 años.
El estudio también encontró que la influencia familiar juega un papel importante en la adopción del seguro de vida. Los estadounidenses demuestran un sólido conocimiento en áreas como la conversión de pólizas, los beneficios en vida y la planificación patrimonial. Sin embargo, hay espacio para mejorar en la comprensión de las diferencias entre el seguro de vida a término y el permanente. La investigación destaca la importancia del Mes de la Conciencia sobre el Seguro de Vida para educar a las personas sobre la amplia gama de beneficios que el seguro de vida puede ofrecer más allá de los beneficios por fallecimiento.
Corebridge Financial의 새로운 연구에 따르면, 미국인들 사이에서 생명 보험 보장 격차가 크게 나타나며, 거의 60%가 보장이 없거나 자신의 상태에 대해 확신이 없다고 합니다. 주요 원칙에 대한 이해는 양호하지만, 비용에 대한 오해가 이러한 격차에 기여하고 있습니다. 80%가 젊을 때 구매하는 것이 가장 저렴하다는 것을 인정하는 반면, 보장이 없는 이들 중 45%가 비용을 주요 장애요인으로 꼽습니다. 건강한 30세의 기간 보험에 대한 일반적인 월 보험료를 정확하게 지적한 사람은 11%에 불과합니다.
이 연구는 또한 가족의 영향이 생명 보험 수용에 중요한 역할을 한다고 밝혀냈습니다. 미국인들은 보험 상품 전환, 생존 혜택, 유산 계획과 같은 분야에 대한 강한 지식을 보여줍니다. 그러나 기간적 보험과 영구 보험의 차이에 대한 이해를 개선할 여지가 있습니다. 이 연구는 생명 보험 인식의 달의 중요성을 강조하여 생명 보험이 사후 혜택을 넘어 제공할 수 있는 다양한 혜택에 대해 사람들을 교육하는 데 도움을 줍니다.
La nouvelle recherche de Corebridge Financial révèle un gap significatif en matière de couverture d'assurance vie parmi les Américains, près de 60 % n'ayant pas de couverture ou étant incertains de leur statut. Bien qu'ils aient une bonne compréhension des principes clés, les malentendus concernant le coût contribuent à ce fossé. Alors que 80 % reconnaissent qu'il est plus abordable d'acheter jeune, 45 % de ceux qui n'ont pas de couverture citent le coût comme le principal frein. Seule 11 % a correctement identifié le coût mensuel typique d'une police temporisé pour un homme de 30 ans en bonne santé.
L'étude a également révélé que l'influence familiale joue un rôle important dans l'adoption de l'assurance vie. Les Américains démontrent une solide connaissance dans des domaines tels que la conversion de polices, les bénéfices de vie, et la planification successorale. Cependant, il y a une marge d'amélioration dans la compréhension des différences entre l'assurance vie temporaire et permanente. La recherche souligne l'importance du Mois de la Sensibilisation à l'Assurance Vie pour informer les gens sur l'éventail des avantages que l'assurance vie peut offrir au-delà des prestations de décès.
Eine neue Forschung von Corebridge Financial zeigt eine signifikante Lücke in der Lebensversicherung unter den Amerikanern, wobei fast 60% entweder keinen Versicherungsschutz haben oder sich über ihren Status unsicher sind. Trotz eines guten Verständnisses der Schlüsselprinzipien tragen Missverständnisse über die Kosten zu dieser Lücke bei. Während 80% erkennen, dass es am günstigsten ist, in jungen Jahren zu kaufen, geben 45% derjenigen ohne Versicherung die Kosten als das Haupthindernis an. Nur 11% identifizierten korrekt die typischen monatlichen Kosten für eine Gesundheitsversicherungspolicy für einen gesunden 30-Jährigen.
Die Studie ergab auch, dass Familiäre Einflüsse eine wichtige Rolle bei der Annahme von Lebensversicherungen spielen. Amerikaner zeigen ein starkes Wissen in Bereichen wie Policenumwandlung, Lebensvorteilen und Nachlassplanung. Es besteht jedoch Verbesserungsbedarf im Verständnis der Unterschiede zwischen zeitlich begrenzter und lebenslanger Lebensversicherung. Die Forschung hebt die Bedeutung des Monats zur Sensibilisierung für Lebensversicherungen hervor, um die Menschen über die vielfältigen Vorteile der Lebensversicherung über Todesfallleistungen hinaus zu informieren.
- 80% of Americans correctly recognize that buying life insurance when young and healthy is most affordable
- 72% understand that term life insurance can be converted to permanent life insurance
- 72% are aware that life insurance can provide living benefits
- 71% know that life insurance can be used to leave a donation to charity
- 58% value leaving money to loved ones through life insurance as part of their financial planning
- 71% cited one or more permanent life insurance living benefits as valuable to their financial plan
- Nearly 60% of Americans either don't have life insurance coverage (50%) or are unsure if they do (9%)
- 45% of those without coverage cite cost as the primary reason for not purchasing a policy
- Only 11% could correctly identify the approximate monthly cost for a typical term life insurance policy
- 32% overestimate the cost of life insurance by more than double or triple the actual amount
- 61% incorrectly believe that the death benefit for all life insurance is fixed at purchase
- 60% wrongly think that term life insurance allows policyholders to build cash value
Insights
The survey reveals significant gaps in life insurance coverage and understanding among Americans, which could present both challenges and opportunities for insurers. 50% of respondents lack coverage and 9% are unsure, indicating a vast untapped market. The misconception about costs, with many overestimating premiums, suggests a need for better education and marketing strategies.
From an investor's perspective, this data highlights potential growth areas for life insurance companies. Effective campaigns addressing cost misconceptions could lead to increased policy sales. Additionally, the 71% interest in living benefits of permanent life insurance suggests a trend towards more comprehensive, higher-value policies, potentially boosting insurers' profitability.
However, the industry faces challenges in consumer education, particularly regarding different policy types. Companies that can simplify and clearly communicate these concepts may gain a competitive edge in capturing market share.
This survey offers valuable insights into consumer behavior and market trends in the life insurance sector. The data reveals a significant knowledge-action gap: while many understand basic principles, this doesn't translate to policy ownership. This disconnect presents both a challenge and an opportunity for insurers to refine their marketing and education strategies.
The finding that life insurance "runs in the family" is particularly intriguing. Those with insured spouses or who are beneficiaries are much more likely to have their own policies. This suggests that targeted marketing to families and emphasizing the "ripple effect" of insurance coverage could be highly effective.
Moreover, the strong interest in living benefits (71% of respondents) indicates a shift in consumer preferences towards more versatile financial products. Insurers who can effectively communicate and deliver on these multifaceted benefits may see increased market share and customer loyalty.
Ahead of Life Insurance Awareness Month, New Corebridge Financial Research Reveals How Misunderstandings Around Cost Contribute to Life Insurance Coverage Gap
Misunderstandings around cost could help explain this life insurance coverage gap. While 8 in 10 (
At the same time, many Americans do not appear to have a clear picture of the affordability of life insurance. Only about 1 in 10 (
“Life insurance is a cornerstone for a secure financial plan, but misperceptions around cost deter too many people from making this important protection a part of their overall strategy,” said Tim Heslin, President of Life Insurance at Corebridge Financial. “Regardless of your stage in life—whether you’re getting married, starting a family, sending a child off to college, or preparing for retirement—it’s important to evaluate your life insurance needs so you can help protect your loved ones and help secure your financial future.”
Life insurance runs in the family
One key determinant of whether someone has life insurance is if those they love are insured. This is particularly true for individuals whose spouse has a life insurance policy, as well as for those who are listed as a beneficiary on a life insurance policy. Nearly half (
Testing well on life insurance basics
The new Corebridge Life Insurance Insights & Awareness research identifies where Americans have a strong understanding of important life insurance concepts. When presented with a series of true or false questions, a majority of respondents answered questions about the following correctly:
-
Converting term life insurance to permanent life insurance –
72% correctly answered that a term life insurance policy can be converted to a permanent one before the end of the policy. Converting term life insurance to a type of permanent insurance is relatively easy and does not typically require a medical exam, even if your health has declined. -
Living benefits –
72% correctly answered that life insurance can provide benefits while you’re living. Permanent life insurance policies can offer features that may create a lifetime income stream, give you tax-free2 access to available cash value, or help you financially deal with life’s challenges. -
Leaving a legacy –
71% correctly answered that life insurance can be used to leave a donation to charity. While many will name their loved ones as beneficiaries, other options include using your policy’s death benefit to honor your school, give to a hospital important to your family, or help another cause you are passionate about.
Room to learn about different types of life insurance
While Corebridge Life Insurance Insights & Awareness finds the most prevalent misunderstanding about life insurance is overestimating cost, the new research also reveals that Americans have an opportunity to learn more about the differences between term life insurance and permanent life insurance, and the specific benefits that these different types of coverage can provide:
-
Death benefit amount is not always fixed –
61% incorrectly answered that the payout at death for all life insurance was fixed at time of purchase and does not change. While term life insurance policies generally set a fixed level for the death benefit, for many permanent policies the death benefit can change over time, as a result of policy owner choices. For instance, individuals with a permanent life insurance policy will see their death benefit change if they take out additional coverage, or if they make withdrawals or use policy loans from the cash value to help meet other financial goals or needs. -
Permanent policies can build cash value, not term –
60% incorrectly answered that term life insurance allows the policyholder to build cash value. This feature is available with permanent life insurance, where a portion of the premium may go toward building cash value that can grow over time as you earn interest and make premium payments. -
Premiums are level for term but not always for permanent life insurance –
49% incorrectly answered that premiums increase every year with most term life insurance policies. In most cases, premiums do not change across the term period of such a policy; however, certain permanent policies such as universal life insurance have flexible premiums that allow the policyholder to pay more or less, depending on, for example, their goals for growing the cash value of the policy, premiums increasing as they age, or whether the cash value has grown enough to partially or fully pay for the policy.
“When people think about life insurance, it’s the protection that life insurance provides for loved ones that typically first comes to mind, and rightly so,” said Heslin. “Permanent life insurance can offer a broad range of benefits that go beyond passing money down to your beneficiaries, and Life Insurance Awareness Month is the perfect time to take action and familiarize yourself with everything life insurance can offer. Meeting with a financial professional or insurance agent is a smart first step to help you understand the nuances between different types of coverage so you can select a policy that fits your needs and can become foundational to your financial plan.”
When asked to consider which life insurance benefits are important for their overall financial plan, Americans found value in both the death benefit as well as the additional living benefits that permanent life insurance features. Nearly 6 in 10 (
During Life Insurance Awareness Month this September, Corebridge Financial will be encouraging more people to take action to improve their life insurance knowledge and learn how life insurance can play a role in their financial planning. Additional insights on Corebridge Life Insurance Insights & Awareness and other life insurance topics can be found at Corebridge Insights & Education.
Methodology
The 2024 Corebridge Life Insurance Insights & Awareness survey was conducted online by Morning Consult on behalf of Corebridge Financial between June 18 - June 20, 2024, among a national sample of 2,204 adults.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than
Policies issued by American General Life Insurance Company (AGL),
All companies above are wholly owned subsidiaries of Corebridge Financial, Inc. Corebridge Financial and Corebridge are marketing names used by these companies.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
© Corebridge Financial, Inc. All rights reserved.
1 Male, 30-year-old, preferred non-tobacco, Select-a-Term,
2 Based on current federal income tax law. Assumes the use of withdrawals to basis and/or policy loans. If the policy is classified as a modified endowment contract (see IRC section 7702A), withdrawals or loans are subject to regular income tax and an additional
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812255238/en/
Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com
Matt Burkhard (Media): media.contact@corebridgefinancial.com
Source: Corebridge Financial
FAQ
What percentage of Americans don't have life insurance coverage according to Corebridge Financial's research?
What is the main reason people don't buy life insurance, as per the Corebridge Financial study?
What percentage of Americans correctly understand that life insurance can provide living benefits?
How does having an insured spouse affect life insurance ownership, according to the Corebridge Financial research?
What percentage of Americans correctly identified the typical monthly cost for a term life insurance policy in the Corebridge Financial study?
