September is Life Insurance Awareness Month

Life Insurance Awareness Month, held every September, is an industry-wide campaign coordinated by the nonprofit Life Happens with LIMRA to close America’s coverage gap. It matters because roughly 100 million U.S. adults — about 40% — say they need life insurance or need more of it.

Are you aware that September is Life Insurance Awareness Month?  Research shows that about 40% of American adults — roughly 100 million people — say they need life insurance or need more of it (LIMRA, 2025)^¹.

Life insurance facts and statistics: 

• In 2025, 51% of American adults report owning life insurance (LIMRA Barometer, 2025)^².
• Healthy adults ages 18–30 overestimate the cost of a $250,000, 20-year term policy by 10 to 12 times its true price (LIMRA, 2025)^¹.
• The average premium for a $500,000, 20-year term policy roughly triples for men between age 30 and age 50 — from about $28 to $76.50 per month (Guardian, 2025)^⁵.
• Gender, age, smoking status, health, medical history and other factors impact your life insurance rates. 
• The suicide clause refers to a clause that usually lasts about two years, in which an insurance carrier won’t pay out for death by suicide. 
• Some life insurance policies exclude coverage if the insured died while committing a felony. Additionally, if the policyholder was murdered by the beneficiary, the benefits are typically not paid out, which is known as the slayer rule. 
• A man’s average premium runs roughly 30% more per month than a woman’s — about $30 vs. $23 for a $500,000, 20-year term policy at age 30 (Policygenius, 2024)^⁴.
• The number of consumers who prefer internet sales for life insurance increased from 17 percent in 2011 to 29 percent in 2020. 

How many people have life insurance 

According to LIMRA’s 2025 Insurance Barometer Study, 51 percent of all adults in the United States are covered by some type of life insurance (LIMRA Barometer, 2025)^². The total percentage of market penetration for the life insurance industry is relatively stable ownership has held at 51% since 2024. Fewer women (48%) than men (54%) report having coverage, a gender gap that has persisted across all 15 years of the study (LIMRA Barometer, 2025)^². 

2020 saw an industry-wide gain of at least two percent in the first half of the year, according to LIMRA. While exact data is not available, the latter half of 2020 saw continued growth in people applying for life insurance due to the pandemic. 

Life insurance claims statistics 

In 2019, insurance benefits and claims totaled $762.1 billion, according to the Insurance Information Institute (iii). Compared to 2018, when benefits and claims totaled $784 billion, the number decreased. 

This amount includes death benefits, annuity benefits, disability benefits and other payouts. The largest payout in 2019 was $339.6 billion for surrender benefits and withdrawals from life insurance contracts made to policyholders who terminated their policies early or withdrew cash from their policies. 

More recently, the industry has kept setting records on the protection side: total life insurance coverage in force in the U.S. reached an all-time high of $22.2 trillion in 2023, according to the American Council of Life Insurers (ACLI)^⁸.

Life insurance statistics by age 

One of the most significant determining factors in life insurance costs is age. The premium amount increases on average, by 4.9 to 9% (Policygenius, 2024)^⁴ for every year of age. Age can also influence whether a person qualifies for life insurance coverage at all. 

Other interesting life insurance statistics around age include: 

• 33% of people feel they have a solid understanding of children’s life insurance, yet 47% agree there is a need for insuring a minor with a permanent policy when it is explained to them. 
• 46% of millennials say one of the main reasons they haven’t purchased coverage is that it’s too expensive — even though healthy adults under 30 overestimate the real cost of a $250,000 term policy by 10–12 times (LIMRA LIAM, 2025)^³ (LIMRA, 2025)^¹.
• 37% of Gen Z adults cite cost as a reason they haven’t purchased coverage, making price misconception the top barrier for both generations (LIMRA LIAM, 2025)^³.
• The average life expectancy in the U.S. in 2023 was 78.4 years, up 0.9 years from 2022 as pandemic-era declines continued to reverse (CDC/NCHS, 2025)^⁶.
  
  

Life insurance industry statistics 

Revenue-wise, the life insurance industry generated $922 billion in 2019, a 2% increase from 2018’s $904 billion. 

$759 billion in direct premiums were written by line, life/annuity insurance in 2019 

About four-fifths of the revenue from life insurance premiums came from ordinary, direct policies. The other one-fifth came from group life policies. 

Other avenues of revenue for life insurance companies include net investment income, reinsurance allowance, separate accounts revenue, and other income, totaling $242.4 billion. 

Northwestern Mutual now holds the largest share of the U.S. life insurance market at about 6.8% of direct premiums written, followed by MetLife (6.4%) and New York Life (6.4%) (MoneyGeek, 2026)^⁹.

Average life insurance cost by company 

Life insurance premiums are primarily based on life expectancy, determined by several factors, including gender, age, health, smoking, and more. Generally speaking, the healthier you are, the cheaper your premiums. 

Another thing that affects your rates is the type of life insurance that you choose to obtain. 

Term life insurance is typically least expensive because it lasts a set number of years with no cash value other than the death benefit. 

Permanent life insurance lasts a lifetime and includes an investment portion. Because of this cash component, the cost for this type of life insurance is substantially more. 

These are some average rates for life insurance from a few insurance carriers, keeping in mind that actual premiums will vary per individual: 

Life insurance company: the average cost of a $500,000, 20-year term policy for a healthy 30-year-old is $23 per month for a female and $30 per month for a male (Policygenius, 2024)^¹⁰.

Life Insurance Myths and Facts 

Deciding which life insurance policy to purchase or even deciding to get life insurance at all can feel overwhelming, especially when consumers are often influenced by a lot of information, some of which is not based on fact. 

You may have heard that life insurance is too expensive or only healthy people qualify, but often these things are not the truth or are only partly true. Here are several life insurance myths: 

Myth 1: Life insurance is only for healthy, middle-aged adults. 

Fact: You are never too old or too young to purchase life insurance. It’s true that your costs will increase as you age and that people with illnesses or certain risk factors may pay more, but there are life insurance policies available for everyone. 

Myth 2: I’m single or married with no children, so I don’t need life insurance. 

Fact: Your loved ones can use life insurance benefits to pay off your debts, including student loans, mortgages, and car loans. It can also be used to take care of your final expenses, such as burial. 

Myth 3: My student loans will be forgiven when I die, so I don’t need life insurance. 

Fact: To keep it simple, it depends on the type of student loans you have. Federal student loan debt is forgiven upon death or total disability, and family members are not responsible for it. In this case, a life insurance payout could go to other things such as living expenses or funeral costs. 

Private student loan debt can be different and is not as cut and dry. For private loans taken out after November 20, 2018, federal law requires lenders to release cosigners if the student borrower dies — but older loans, and loans where the lender pursues the borrower’s estate, can still leave families exposed. You’ll need to ask your lender if they provide student loan death forgiveness, which will give you a better estimate of how much life insurance coverage you need.

Myth 4: My beneficiaries will have to pay income taxes on the proceeds of my life insurance policy. 

Fact: Life insurance benefits are generally income tax-free up to a certain threshold, according to the Internal Revenue Service (IRS). However, any interest payments on top of the policy may be taxed. 

Myth 5: If I get a term life insurance policy, I can’t convert it to a permanent or whole life policy. 

Fact: It is possible to convert some term life insurance policies, depending on the policy you purchased. However, you should find out the details from your agent before buying your policy. 

Myth 6: Once my children are adults, I don’t need life insurance. 

Fact: Having life insurance later in life has many advantages, like relieving the burden of funeral costs, paying state estate taxes, paying off your debt or simply giving your children a nest egg they can use to help support their own families. 

Myth 7: I don’t need life insurance since my savings is at a comfortable amount. 

Fact: The national median cost of a funeral with a viewing and burial is $8,300, and a funeral with cremation runs $6,280 (NFDA, 2023)^⁷,, according to the National Funeral Directors Association. Your savings were likely for retirement, so your loved ones may have to pay for your funeral costs if there is not enough left over. Additionally, if you have any debts, your estate will use your savings to pay for those, which could reduce the amount left for your beneficiaries. 

Myth 8: I cannot afford life insurance. 

Fact: Consumers often overestimate the cost of a term life insurance policy. Many individuals are surprised to learn that a healthy 30-year-old could potentially get a  $500,000 20-year level term policy for $23–$30 a month (Policygenius, 2024)^¹⁰. With this policy, beneficiaries would receive the full $500,000 (as most are tax-free) if they were to pass away between 30 and 50. 

Life insurance can be very affordable, depending on the type and amount of coverage you need. 

Myth 9: I draw no income. I don’t need life insurance. 

Fact: If you’re a stay-at-home parent, you don’t bring in an actual paycheck, but you likely provide services that could cost a lot of money to replace, such as child care, daily transportation, cooking and more. Life insurance benefits can help replace some of these costs. 

Myth 10: Life insurance does not cover death by suicide. 

Fact: Life insurance actually does often cover a policyholder’s death by suicide in many cases. Frequently, however, life insurance policies include contestability and suicide clauses which must expire before the benefit will be paid out. This period is usually two to three years, but beneficiaries may receive the death benefit once the clauses expire. 

Myth 11: If you have health issues, you cannot get life insurance. 

Fact: While health is often used to calculate rates and coverage amounts when determining a policy’s premium, it doesn’t mean that life insurance is out of the question with a pre-existing condition. Even further, there are some policies specifically built for consumers with pre-existing conditions, such as diabetes. 

Additionally, suppose the individual is within the eligible age range, typically 40 to 85. In that case, they can consider guaranteed issue life insurance if they don’t want their medical information to be a factor at all. 

Frequently Asked Questions

What is Life Insurance Awareness Month?

Life Insurance Awareness Month is an annual campaign held every September, coordinated by the nonprofit Life Happens together with LIMRA and the insurance industry, to educate Americans about the role of life insurance in financial protection and to close the coverage gap (LIMRA LIAM, 2025)^³.

How many Americans have life insurance?

About 51% of American adults report owning life insurance as of 2025 — a figure that has held steady since 2024. Ownership is higher among men (54%) than women (48%), and about 100 million adults say they need coverage or need more of it (LIMRA Barometer, 2025)^² (LIMRA, 2025)^¹.

How much does life insurance actually cost?

Far less than most people guess: a healthy 30-year-old pays about $23–$30 a month for a $500,000, 20-year term policy. Healthy adults under 30 overestimate the true cost of coverage by 10 to 12 times, which is the single biggest reason young people put off buying (Policygenius, 2024)^¹⁰ (LIMRA, 2025)^¹.

Why does September matter for buying life insurance?

There’s no seasonal discount — but there is a seasonal cost to waiting. Premiums rise 4.9% to 9% with every birthday, so each Life Insurance Awareness Month you let pass makes the same policy permanently more expensive. September is simply a built-in annual reminder to lock in your rate (Policygenius, 2024)^⁴.

Does life expectancy affect life insurance rates?

Yes — premiums are fundamentally priced on life expectancy, which is why women (who live longer on average) pay less than men. U.S. life expectancy rebounded to 78.4 years in 2023, its second straight annual increase after the pandemic-era decline (CDC/NCHS, 2025)^⁶.

References

1. LIMRA & Life Happens. “Adults Age 30 and Younger Overestimate Life Insurance Cost by 10–12 Times.” 2025 Insurance Barometer Study, June 2025. https://www.limra.com/en/newsroom/news-releases/2025/adults-age-30-and-younger-overestimate-life-insurance-cost-by-1012-times/

2. LIMRA. “Trends in Focus: The 2025 Life Insurance Barometer” (presentation, 2025 Insurance Barometer Study data). https://www.limra.com/globalassets/limra-loma/events-learning-and-networking/conferences/2025/life-and-annuities-conference/presentations/2.3-trends-in-focus_the-2025-life-insurance-barometer.pdf

3. LIMRA. “Life Insurance Awareness Month: How the Industry Educates the Next Generation on Financial Protection.” September 2025. https://www.limra.com/en/newsroom/industry-trends/2025/life-insurance-awareness-month-how-the-industry-educates-the-next-generation-on-financial-protection/

4. Policygenius. “Term Life Insurance Rates.” October 2024. https://www.policygenius.com/life-insurance/term-life-insurance-rates/

5. Guardian Life. “Term Life Insurance Rates for 2025.” https://www.guardianlife.com/life-insurance/term-rates

6. CDC / National Center for Health Statistics. “Mortality in the United States, 2023” — U.S. life expectancy 78.4 years. National Vital Statistics Reports, 2025. https://www.cdc.gov/nchs/data/nvsr/nvsr74/nvsr74-06.pdf

7. National Funeral Directors Association. Media Center statistics — 2023 General Price List Study. https://www.nfda.org/media-center/

8. American Council of Life Insurers. “Life Insurers Fact Book” — life insurance in force reached a record $22.2 trillion in 2023. https://www.acli.com/about-the-industry/life-insurers-fact-book

9. MoneyGeek. “List of the Largest Life Insurance Companies” (NAIC 2024 direct premium data). 2026. https://www.moneygeek.com/insurance/life/list-largest-life-insurance-companies/

10. Policygenius. “Life Insurance Rates: $500K Term Policies Start at $300/Yr.” October 2024. https://www.policygenius.com/life-insurance/life-insurance-rates/