Life Insurance: Who Needs it the Most?
Life Insurance
Misconceptions can prevent families from getting the coverage they need.
While most people understand the importance of Life insurance, many don’t secure the coverage they need because they think it’s too expensive. In fact, the latest LIMRA Study revealed that nearly 80% of Americans overestimate the true cost of a term life insurance policy.1
Term Life Insurance for Every Life Stage
Choose from a selection of Group Term Life insurance plans for the protection your family needs.
According to the 2024 study, the following groups in particular are at risk of not having the coverage they need:
Gen Z
According to LIMRA, over half of Gen Z adults believe that life insurance for a healthy 30-year-old would set them back at least $1,000 a year–rather than the less than $200 it would cost.3 While Gen Z may not think they need it, as they approach their 30’s, marriage and children become realities, and so does the need for life insurance. Securing a 20-year term plan while young and healthy ensures they’ll be covered when facing additional financial responsibilities.
Millennials
This year, Millennials expressed the highest level of concern about a range of financial issues, including owning Life insurance. Fewer than half report that they own coverage with 42% saying it’s too expensive, and 46% overestimating the true cost by five times or more. It’s no surprise that their estimates are so far off since almost half admit they used “a wild guess or a gut feeling” to estimate the cost.4 But for those purchasing homes and starting families, calculating their life insurance needs is crucial.
Women
In 2024, women are less likely than men (46% versus 57%) to have life insurance. Nearly half of those surveyed are aware of a coverage gap, but over 40% note cost as a deterrent to purchasing it or purchasing more. Another 30% say they have other financial priorities. And only 21% of women say they are very or extremely knowledgeable about life insurance.5 Most women do need life insurance. Lack of coverage can have very real consequences for families.
If you’re among those who need life insurance, don’t let misconceptions keep you from getting the coverage your loved ones deserve. The Alumni Benefits Program offers well-priced plans, which may cost less than you think. Take time to explore your options and remember that any amount of life insurance is better than none at all.
1,2,4,5 “U.S. Life Insurance Need Gap Grows in 2024,” Life Happens, https://lifehappens.org/press/barometer-2024/, April 15, 2024.
3 “New Study Shows Interest in Life Insurance at All-Time High in 2023,” LIMRA, April 24, 2023.
