Americans with Life Insurance Dramatically More Confident in the Ability of Their Loved Ones to Manage Financially Without Them
Ahead of Life Insurance Awareness Month, Corebridge Financial Issues New Research Underscoring How Life Insurance Can Contribute to Overall Wellbeing
According to new research from Corebridge Financial, Americans with life insurance are significantly more likely to say that their spouse or dependents would be able to manage financially without them, with an impressive 47% of those with life insurance saying they are either completely confident or very confident, compared to just 28% for those without life insurance. Moreover, those without a life insurance policy are four times more likely (32%) to say they are not at all confident, compared to 8% of those with life insurance.
"Life insurance can provide protection to help safeguard against the difficult scenarios that no one wants to think about but we all need to prepare for," said Eric Tarnow, Head of Life Insurance at Corebridge Financial. "Life is unpredictable but that doesn't mean we can't prepare. Taking action to secure life insurance coverage is critical to helping ensure that the plans and dreams you and your loved ones have are financially built to last."
Misperceptions around cost of life insurance dragging down the number of Americans with coverage
Half of Americans (50%) say they do not have life insurance and another 7% do not know whether they have coverage. This coverage gap represents an alarming shortcoming in the financial plans of many Americans, but there may be opportunities to narrow this gap through education, especially around the cost of life insurance.
Almost 4 in 10 survey respondents (38%) say cost is the top reason for not buying life insurance, followed by another 21% who say they have more important financial considerations. But, in the same survey, Americans appear to believe life insurance is much more expensive than it actually is. When asked to estimate the price of a 20-year $250,000 term life insurance policy for a healthy 30-year-old—which is typically around $13 per month1—only 10% could identify the correct amount with nearly a quarter of respondents (24%) choosing an amount that was more than triple the actual cost.
Streamlined processes could help more Americans secure life insurance coverage
The new research from Corebridge details how technology advances across the life insurance purchase process also could help close the coverage gap. Nearly 3 in 4 respondents (73%) say they would be more likely to get life insurance if the purchase process included a 24-hour online approval process. Today, thanks to increasing use of online applications and accelerated underwriting practices, it's possible for life insurance policies to be delivered immediately, while some may be delivered in as little as 24 hours without the need for a medical exam.
Additionally, for many, the following streamlined processes would make them more likely to buy a policy:
- Having minimal paperwork (39%)
- No medical exam or blood test requirements (38%)
- Being able to apply online (36%)
- Being able to complete the application on their own time (32%)
"The process to purchase life insurance has changed in important ways across our industry, and Corebridge has been very successful in leveraging data-driven practices to enhance both ease-of-use and speed in how our customers and their financial professionals can secure coverage," said Tarnow. "Customers have a wide range of options for how and when they go about looking into life insurance and securing coverage, and the flexibility, convenience and simplicity of today's application process has changed the game. Whether it's an end-to-end digital platform, working with a knowledgeable financial professional or some combination of these, there really is something for everyone as they put this important protection in place for themselves and their loved ones."
Wide range of benefits offered through life insurance found to be very valuable
Today's modern life insurance is designed to meet a wide range of financial needs. In addition to providing money payable to beneficiaries, the primary reason most individuals purchase coverage, life insurance also can offer benefits to policyholders while they are still alive.
According to the new research from Corebridge, these living benefits are recognized by more than 8 in 10 survey respondents as valuable:
- Covering emergencies (87%)
- Receiving financial support when facing a critical medical diagnosis (86%)
- Covering long-term care costs, such as nursing home or at-home care (84%)
- Having a savings benefit that grows tax-free and can be borrowed against (82%)
These benefits, which may be available depending on the type of policy and optional features selected, closely align with what survey respondents say are their top financial concerns: unexpected expenses (74%), long-term care costs for themselves or a family member (71%), running out of money in retirement (69%), and health care costs in retirement (69%).
"The protections offered by life insurance are so important, and with certain policies and benefits, you can even potentially address different needs and opportunities while you're alive. For example, with permanent life insurance, it's possible to build cash value that can help build wealth and give you extra income for milestones such as a child going to college, helping a loved one with the down payment for their first home or even your own retirement," said Tarnow. "Life Insurance Awareness Month is a great time to expand your knowledge about how different types of coverage can align with your overall financial plan. Meeting with a financial professional or insurance agent can be a powerful assist as you work to select a policy that best fits your needs."
Mismatch between amount of life insurance Americans choose and why they secure coverage
While there are a range of reasons why individuals purchase life insurance, it's important that the amount of coverage is at an appropriate level for what they're looking to achieve. In the Corebridge research, however, there appears to be a mismatch between the amount of life insurance Americans choose and why they secure coverage. In fact, 27% of those already with life insurance say they need to increase their level of coverage.
The top factors that determined the size that an individual chose for their life insurance policy is a mix of external factors and internal objectives:
- The amount they could afford (39%)
- The amount needed to cover final expenses (34%)
- The amount their employer provides (24%)
- Enough to cover their family's outstanding debts (21%)
Only 6% of those with life insurance used the estimated cost of their children's education to determine the size of their life insurance policy, and only 11% used the amount needed to pay off their home mortgage.
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 the new Corebridge Financial Understanding Life Insurance Needs research and other life insurance topics can be found at Corebridge Insights & Education.
Methodology
The 2025 Corebridge Financial Understanding Life Insurance Needs survey was conducted online by Morning Consult on behalf of Corebridge Financial between May 30 – June 1, 2025, among a national sample of 2,200 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 $415 billion in assets under management and administration as of June 30, 2025, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube and Instagram.
Policies issued by American General Life Insurance Company (AGL), Houston, TX except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life). AGL does not solicit, issue or deliver policies or contracts in the state of New York.
Policy Form Numbers: ICC21-19311 Rev0321, ICC21-19310 Rev0321, 19310, 19311, 19311-5, 19310-5, 19311-10 Rev0321, 19310-10 Rev0321, 19311-35, 19310-35, 19311N Rev0321 and 19310N Rev0321; Rider Form Numbers: ICC14-14012, 14012, 14012N, ICC23-23601, 13601, 13601N, ICC14-14001, 14001, 14001N, ICC22-22995, 22995, 22995N. Guarantees are backed by the claims-paying ability of the issuing insurance company and each company is responsible for the financial obligations of its products. Products may not be available in all states and features may vary by state. Please refer to the policy for more information.
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 Female, 30-year-old, preferred non-tobacco, Select-a-Term, $250,000, 20-year duration; rates as of May 15, 2025
View source version on businesswire.com: https://www.businesswire.com/news/home/20250819266804/en/
Işıl Müderrisoğlu (Investors): [email protected]
Matt Burkhard (Media): [email protected]