Life insurance coverage gap affects 22 million people in the U.S

A recent LIMRA Insurance Barometer Study highlights a significant coverage gap in the United States, where 22 million people report that their current life insurance coverage is inadequate. While 48% of U.S. adults do not own life insurance, many existing policyholders face a shortfall in protection.

Data indicates that the coverage gap varies by demographic. Approximately 41% of women state they require life insurance, compared to 36% of men. Younger generations, specifically Gen Z, face a 45% coverage gap, often driven by the misconception that appropriate policies are prohibitively expensive. Research suggests those under 30 may overestimate the cost of coverage by as much as five times.

Barriers to obtaining adequate insurance include uncertainty regarding which packages to select and a lack of opportunity to sign up. However, a shift in consumer behavior is emerging, with younger families beginning to prioritize the level of protection provided by a policy over its monthly cost.