The number of U.S. households owning life insurance (87.2 million) grew by 4.9 million over the last six years.
The overall ownership rate (market penetration) is 70 percent, unchanged from 2010.
The average amount of coverage owned and the average household income replacement ratio have decreased over the past 12 years leaving many households underinsured.
Almost half of all U.S. households have a life insurance need gap. The total market need is at least $12 trillion. Market need will grow by approximately 2.8 percent annually. This means an additional $340 billion of new life insurance need enters the market each year.
Trends in Life Insurance Ownership Volume Since 1960
Trends in the Life Insurance Ownership Rate Since 1960
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Meet the Project Director
James T. Scanlon, M.S., HIA
Senior Research Director, Insurance Research - Markets
Scanlon directs a team of LIMRA researchers focused on insurance product and service marketing. His program includes onetime topical studies, as well as recurring surveys that track consumer behaviors and ownership levels over time. Scanlon conducts projects with a focus on key consumer segments, including the middle market, affluent markets and small business owners. His studies investigate the relationship between household characteristics, personal attitudes, and financial behaviors.
Scanlon has over 25 years of research experience. He began his career with LIMRA from 1990 to 1994 and rejoined in 2015. He holds an M.S. in resource economics from the University of Massachusetts, where he also earned a B. A. in economics.