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Who Buys Source

Based on research by LIMRA, 30% of U.S. households have no life insurace at all, and only 44% have individual life insurance. Fifty percent of U.S. households say they need more life insurance.

LIMRA, 2014

Profiling adults 18+ who acquired some type of life insurance in the past year:

GfK MRI, 2013

Of those adults 18+ who acquired some form of life insurance in the previous year, 51.4% were men and 48.6% were men.
 

GfK MRI, 2013

Adults 18+ who obtained some category of life insurance in the past year, by age group: 18-24, 11.3%; 25-34, 25.9%; 35-44, 21.9%; 45-54, 20.4%; 55-64, 13.1%; 65+, 7.4%.

GfK MRI, 2013

Adults 18+ who acquired some form of life insurance in the previous year, by income bracket: $100,000+, 30.0%; $75-99,999, 16.9%; $60-74,999, 11.3%; $50-59,999, 9.6%; $40-49,999, 7.5%;$30-39,999, 9.1%; $20-29,999, 7.2%; under $20,000, 8.4%.

GfK MRI, 2013

Adults 18+ who obtained some type of life insurance in the past year, by race: White, 73.6%; Black, 16.5%; Other, 9.9%; Hispanic origin, 11.2%.

GfK MRI, 2013

Adults 18+ who acquired some form of life insurance in the previous year, by region: Northeast, 15.8%; Midwest, 23.8%; South, 41.6%; West, 18.8%.

GfK MRI, 2013

Adults 18+ who obtained some category of life insurance in the past year, by marital status: Single, 25.5%; married, 58.9%; separated/widowed/divorced, 15.6%.

GfK MRI, 2013

When They Buy Source

September is Life Insurance Awareness Month.

LIMRA, 2014

Why They Buy Source

According to a 2014 survey by State Farm, 78% of parents say life insurance plays a role in their overall financial plan, yet only 59% of parents would be likely to adjust their budget to afford life insurance.

State Farm, 2014

Among households saying they are likely to buy life insurance in the next 12 months, 35% say the reason they have not yet bought more life insurance is because no one has approached them about it.

LIMRA, 2014

Based on a 2014 study by State Farm, life events that typically cause consumers to think about life insurance: Becoming a parent, 37%; getting married, 30%; suggestion by insurance agent or financial planner, 20%; buying a home, 13%.

State Farm, 2014

According to a 2014 survey of consumers who were direct buyers of life insurance (Internet/email, through the mail, over the phone), 60% said they were pleased with the entire process. The survey respondents said the greatest advantages of buying by direct response were convenience, not feeling pressure to buy, and saving money. The biggest drawbacks involved uncertainty over whether the consumer selected the appropriate amount or appropriate type of insurance, as well as the lack of personal contact.

LIMRA, 2014

Based on a 2014 LIMRA survey of just over 2,000 adults, 65% indicated that they personally need life insurance. The most commony cited reason for not purchasing more life insurance is it would be "too expensive," followed by "other financial priorities."

LIMRA, 2014

According to research by LIMRA, the most important life events that prompt consumers to shop for life insurance are getting married, buying a home, having or adopting a baby, receiving substantial assets, or experiencing the death of a relative or close friend.

LIMRA, 2013

How They Buy Source

Research by LIMRA determined that the average amount of life insurance coverage for U.S. adults has declined to $167,000, down $30,000 from the average coverage in 2004.

LIMRA, 2014

According to a 2014 LIMRA survey of more than 5,800 consumers who seriously shopped for life insurance within the past two years, talking with family and friends was the most popular first step in the process. Researching online and talking with a professional closely followed as first steps.

LIMRA, 2014

A 2014 survey of more than 5,800 consumers who seriously shopped for life insurance during the past two years found that one-third of all shoppers met with a financial professional at some point in their search. And no matter at what point the meeting with the professional took place, 58% became buyers (or attempted to buy), compared to 38% who did not have a face-to-face meeting. 

LIMRA, 2014

What They Buy Source

Three types of life insurance policies predominate the market. Individual insurance is underwritten separately for each individual who seeks insurance protection, while group insurance is underwritten on a group as a whole (such as the employees of a company or the members of an organization). Credit insurance guarantees payment of some debt, such as a mortgage or other loan, in the event the insured person dies, and can be bought on either an individual or a group basis.

American Council of Life Insurers, 2013

Of new life insurance purchased in 2012 (face amount), individual policies accounted for 58.8% of the total, while group life accounted for 39.2% of the amount. Credit life made up the  remaining 2.0%.

American Council of Life Insurers, 2013

Where They Buy Source

While face-to-face is still the most preferred method for buying life insurance, 86% of consumers would use the Internet to research life insurance before purchasing. Only 16% of consumers would prefer to buy insurance completely online.

LIMRA, 2014

Top issuers of individual life insurance in 2012 (totals in billions): 1. Northwestern Mutual, $131.6; 2. MetLife, Inc., $111.1; 3. New York Life, $89.2; 4. Legal & General, $83.7; 5. State Farm, $78.6; 6. ING North America, $73.9; 7. Prudential Financial, $71.8; 8. Primerica, $59.6; 9. American International Group, $57.2; 10. AEGON USA, $56.9.

American Council of Life Insurers, 2013

Leading issuers of group life insurance in 2012 (totals in billions): 1. MetLife, Inc., $138.8; 2. UNUM, $84.7; 3. CIGNA, $79.2; 4. Minnesota Mutual, $78.2; 5. Lincoln Financial, $72.1; 6. Aetna, $71.3; 7. Prudential Financial, $67.9; 8. UnitedHealth, $66.0; 9. Hartford Life, Inc., $56.8; 10. Sun Life Assurance, $53.6.

American Council of Life Insurers, 2013

Largest life insurers in the U.S., based on 2012 total assets (in billions): 1. MetLife, Inc., $562.2; 2. Prudential Financial, $491.0; 3. Manulife Financial, $252.2; 4. American International Group, $247.1; 5. TIAA-CREF, $242.3; 6. New York Life, $238.0; 7. Hartford Life, Inc., $213.6; 8. Northwestern Mutual, $202.5; 9. Lincoln Financial, $192.2; 10. ING North America, $187.7.

American Council of Life Insurers, 2013

States with the highest dollar volume of life insurance policy purchases in 2012 (includes individual, group and credit) (totals in billions): 1. California, $327.9; 2. Texas, $264.2; 3. New York, $190.0; 4. Florida, $153.1; 5. Illinois, $133.5; 6. Pennsylvania, $111.4; 7. New Jersey, $102.4; 8. Ohio, $101.6; 9. Georgia, $95.8; 10. North Carolina, $90.5; 11. Virginia, $83.1; 12. Washington, $80.0; 13. Massachusetts, $71.6; 14. Michigan, $66.9; 15. Tennessee, $65.4. 

American Council of Life Insurers, 2013

Business Trends Source

Percentage change in premium sales for the different categories of individual life insurance in 2013: Universal life, -7%; variable universal life, +24%; term life, +3%; whole life, +4%.

LIMRA, 2014

Sales of variable annuities were off 1% in 2013 to $145.3 billion, while sales of fixed annuities jumped 17% in 2013 to $84.8 billion.

LIMRA, 2014

Studies conducted by LIMRA Insurance Research have shown that 80% of Americans overestimate the cost of life insurance.

LIMRA, 2014

The amount of new life insurance purchased by Americans in 2012 totaled $2.857 trillion, down 1.2% from the prior year. By the end of 2012, total life insurance coverage in the U.S. reached $19.321 trillion, up from $19.219 trillion in 2011 and $16.346 trillion 10 years earlier.
 

American Council of Life Insurers, 2013

The total face amount of individual life insurance coverage in force increased to $11.215 trillion in 2012, compared to $10.994 trillion in 2011. In 2002, the amount of individual life insurance in force stood at $9.312 trillion.
 

American Council of Life Insurers, 2013

The total amount of group coverage dropped 1.3% in 2012 to $8.012 trillion. Group in-force coverage -- most frequently coverage for employees obtained at their job -- stood at $6.876 trillion in 2002.


 

American Council of Life Insurers, 2013

In 2012, total income of all life insurance companies increased 4.0% to $952.4 billion, up from $915.3 billion in 2011. Insurance premiums (derived from life insurance, health insurance and annuities) accounted for 69% of total income, while investment earnings (24%) and other income (7%) accounted for the rest. 

American Council of Life Insurers, 2013

Individual life represented 58.0 of all life insurance in force in the U.S. at the end of 2012, compared to 41.5% for group insurance and 0.5% for credit insurance.

American Council of Life Insurers, 2013

A total of 5.8% of individual life insurance policies were voluntarily terminated in 2012, compared to 6.1% in both 2011 and 2010.

American Council of Life Insurers, 2013

At the end of 2012, there were 868 life insurance companies doing business in the U.S., down from 917 in 2010 and 976 in 2008.

American Council of Life Insurers, 2013

Distribution of life insurers' expenditures in 2012: Benefit payments, 63%; additions to reserves, 20%; operating expenses, 14%; taxes, 2%; investment expenses, 1%.

American Council of Life Insurers, 2013

Misc Source

States where the greatest number of life insurance companies are headquartered: 1. Texas, 117; 2. New York, 85; 3. Illinois, 57; 4. Ohio, 40; 5. Arizona, 34; 6. Pennsylvania, 33; 7. Delaware, 29; 8. (tie) Louisiana and Iowa, 26; 10. (tie) Arkansas, Indiana and Wisconsin, 25.

American Council of Life Insurers, 2013