Americans who own life insurance are far more likely to believe their families could manage financially if they were no longer around, according to new research from Corebridge Financial.
The study, released ahead of Life Insurance Awareness Month, suggests that coverage not only provides a safety net but also bolsters peace of mind for policyholders and their loved ones.
The survey, which polled 2,200 adults across the US, found that 47% of respondents with life insurance expressed complete or strong confidence in their dependents’ ability to handle finances in their absence.
In contrast, only 28% of those without coverage felt the same. Those lacking a policy were also four times more likely to say they had no confidence at all in their family’s ability to cope financially, compared to those with coverage .
Despite these findings, half of Americans surveyed said they do not have life insurance, and another 7% were unsure if they had coverage. Cost remains the most frequently cited barrier, with 38% of those without a policy saying price is the main reason they have not purchased coverage.
However, the report highlights a widespread misconception about affordability: only 10% of respondents correctly estimated the monthly premium for a 20-year, $250,000 term policy for a healthy 30-year-old at about $13, while nearly a quarter guessed an amount more than three times higher .
The study also points to opportunities for advisors to bridge the coverage gap. Nearly three-quarters of respondents said they would be more likely to buy life insurance if they could get approval online within 24 hours. Features such as minimal paperwork (cited by 39%), no medical exams (38%), and the ability to apply online (36%) or on one’s own time (32%) were also cited as incentives.
Eric Tarnow, head of life insurance at Corebridge Financial, said the process of buying coverage has changed significantly. Tarnow noted that 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.”
Beyond the traditional death benefit, the report highlights the value Americans place on so-called “living benefits.” More than four-fifths of respondents said features such as emergency coverage (87%), support for critical medical diagnoses (86%), and long-term care options (84%) are valuable. Another 82% also pointed to the value of a tax-free savings benefit that the policy owner can borrow against.
These align closely with top financial concerns cited by the survey respondents, including unexpected expenses (74%), long-term care (71%), and running out of money in retirement (69%) as well as retirees' health care costs (69%).
A recent analysis by Fidelity found the average 65-year-old retiring in 2025 would need $172,500 to pay for their healthcare and medical expenses until death. That figure represents a more than 4% increase compared to last year, and is more than twice the initial projection of $80,000 from Fidelity's first estimate back in 2002.
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