Life insurance may not be as tangible as a car or a house, but the numbers reveal a clear truth: millions of Americans aren’t signing up for life insurance–the intangible asset to protect their tangible assets–creating a protection gap they can’t afford to ignore, but are.
According to the 2024 LIMRA & Life Happens Insurance Barometer Study, only 51% of U.S. adults report owning at least one life insurance policy, yet 42% (about 102 million adults) say they need coverage or more of it in order to be truly protected.
This gap has persisted since the pandemic and reveals two stubborn truths: people know they need more coverage, and yet, they delay or avoid getting it. That makes now a critical time to review your own coverage and make sure you’re not a part of the group sleeping on a dire need.
Why Life Insurance Matters Now More Than Ever
Though life insurance may not top your daily mental checklist, its role is extremely powerful. When intentionally chosen, a policy can:
- Provide income for your loved ones if you die unexpectedly.
- Cover remaining debts and expenses so your family isn’t burdened after your passing.
- Safeguard business continuity if you’re a business owner.
- Support legacy goals, equalize inheritances, and simplify estate planning.
- Even provide living benefits–like payments towards medical bills if you get cancer–should your policy furnish them.
Furthermore, economic instability is always pressing. Inflation, recession, higher taxes, the housing crisis, and the rising cost of all things medical are stranding otherwise stable families on bleaker shores. Knowing that something is guaranteed to pay out and provide aid to you and your family in the middle of this truly unprecedented money mess, at the very least, may help you sleep a little better at night.
Who REALLY Needs Life Insurance?
There really is no person who wouldn’t benefit from having a life insurance policy, but there are certainly individuals whose situation is more pressing. Let’s break them down.
- Breadwinners. If others rely on you for support–your children, your partner, your aged parents, etc.–term or permanent life insurance can offer them an income replacement so they’re not left scrambling if and when you pass away.
- Business Owners. Life insurance can play a strategic role in protecting your business and its legacy long in the event of your death. They can fund buy-sell agreements, pay off any debt your business has taken on, cover payroll and operations while an ownership transition takes place, etc.
- Full-time Parents or Guardians. Even if you don’t bring home paychecks, your household value is real. A death benefit can help cover things like daycare, education expenses, housing and food costs, bills, etc. in the event of a loss.
- Singles and Young Adults. Even if you don’t have a family, house, or business of your own yet, if you’d like to have one someday, life insurance should be on your radar. Reason being: life insurance costs less for the young and healthy. If you can get a policy now, you can lock in a low premium for life. Remember, 72% of consumers overestimate the cost of term life insurance. What you might think will cost you a fortune might actually be less than your Prime subscription or daily coffee order.
- Estate and Legacy Planners. For the financially savvy and future-focused, getting a permanent life insurance policy won’t just protect your family, it can provide the liquidity and tax-efficient structure heirs need when estate taxes or wealth transfer strategies come into play.
Myths that Keep People Uninsured
Aside from the obvious, why are so many people opting to go without life insurance? It might have something to do with these (false) beliefs…
- “Life insurance is too expensive.” Life insurance can be customized to fit a budget. Even if all you’ve got to work with is $10, there’s something out there that can help.
- “I’ll get it later when I’m more financially secure.” You might have more disposable income if you wait, but your age will be higher and your health will be worse, making your premiums more expensive.
- “I’ll just use savings instead.” Look, savings accounts are great. You should definitely have a robust savings account. However, don’t have your savings account as your primary back-up plan in the event of your death. Your savings can be drained by unexpected costs, but a life insurance death benefit is a guaranteed safety net.
- “I don’t know how much life insurance I need.” A valid point…if we didn’t live in the age of hyper-advanced technology. Online life insurance calculators can help you determine ballpark numbers and get an idea of what you’re needing, and meeting with a licensed life insurance professional to ask questions and clear confusion should come at no cost to the consumer if they’re not phonies. Consultations and coverage reviews are free services.
Life Insurance Questions?
We hope that this information on life insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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This article was updated November 12, 2025.