102 Million Americans Are Underinsured — Are You One of Them?

According to the 2024 LIMRA Insurance Barometer Study — the most comprehensive annual survey of American life insurance attitudes and behaviors — a record 102 million American adults acknowledge they need life insurance or need more of it. Meanwhile, 72% of Americans overestimate the cost of a basic term life policy, often by three times or more.

The gap between awareness and action is costing families their financial security.

The Scale of the Problem

The numbers from LIMRA's 2024 study paint a clear picture:

• 51% of American adults report owning some form of life insurance — down significantly from 63% in 2011
• 42% of adults — 102 million people — say they need life insurance or need more coverage
• 47% of families say they would face financial hardship within 6 months if their primary wage earner died unexpectedly
• $200,000 is the average coverage gap per household — the difference between coverage owned and coverage needed

Why Are So Many Families Underinsured?

The LIMRA study identifies several key barriers:

Cost perception: The number one reason consumers give for not purchasing life insurance is that it's too expensive. Yet 72% overestimate the true cost — many by a factor of three or more. When asked how they arrived at their cost estimate, more than half (54%) said it was based on "gut instinct" or a "wild guess."

Knowledge gap: 44% of people admit to being only somewhat or not knowledgeable at all about life insurance. People don't buy what they don't understand.

Inertia: Even among those who acknowledge a coverage gap and intend to purchase, many never follow through. The intent-to-action gap is one of the industry's most persistent challenges.

The Middle Market Opportunity

LIMRA's research identifies middle-income Americans (households earning $50,000–$149,999) as the group with the largest unmet need. Four in 10 middle-income Americans — 50 million adults — acknowledge a coverage gap. This group also expressed the highest intent to purchase (54%), suggesting they are ready to act with the right guidance.

What You Can Do

If you are among the 102 million Americans who know they need more coverage, the first step is simply to find out what coverage actually costs for your specific situation. The answer is almost always less than you expect.

Kingdom Health Group offers free, no-obligation quotes from 20+ top-rated carriers. A licensed agent will walk you through your options and help you find coverage that fits your budget — with no pressure and no sales tactics.

The information in this article is for educational purposes only and does not constitute insurance, financial, or legal advice. Coverage availability and terms vary by carrier and state. Consult a licensed insurance professional for advice specific to your situation.