Life insurance coverage gap affects 22 million Americans

A recent LIMRA Insurance Barometer Study, highlighted by AccuQuote, reveals a significant coverage gap in the United States. While 48% of American adults do not own life insurance, approximately 22 million people report that their existing coverage is inadequate for their needs.

Data indicates that the coverage gap varies by demographic. Roughly 41% of women report needing life insurance compared to 36% of men. Among Gen Z, the coverage gap stands at 45%, driven largely by the misconception that appropriate policies are prohibitively expensive; many under-30s estimate costs to be five times higher than actual market rates.

Barriers to obtaining sufficient coverage include uncertainty regarding which insurance packages to select and a lack of opportunity to sign up. However, a shift in consumer behavior is emerging, with younger families increasingly prioritizing the level of protection a policy provides over its monthly cost.