8 Must-Know Life Insurance Statistics of 2022

As a financial first responder, the insurance industry has been around for decades for both calamities seen and unforeseen. Every year, the insurance industry plays a crucial role in the rebuilding and recovery process for its customers. 

In this piece, we’ll be reeling out the must-know life insurance statistics of 2022. We’ll be relying on the 2021 Insurance Fact Book, the Future of Insurance Data 2021, Statista, and other sources. 

Let’s pause for a minute and ponder on this; 

If you die today, what will happen to your family financially? Are you going to leave them in a mountain of debt for your funeral? Let’s hope that you will not be on the negative life insurance statistics of 2021

1. How Many People Have Life Insurance in 2021? 

Currently, about 54% of Americans have one form of life insurance. However, there are also conflicting data that many of these figures are underinsured. 

2. Why are People Buying Life Insurance in 2021? 

Let’s have a perspective on why consumers are purchasing life insurance. The top reasons include income replacements, burial, wealth transfer, mortgage, business, and tax savings. 

Other reasons include college education, charitable giving, and estate planning. 

3. What’s the Average Life Insurance Payout in 2021? 

A life insurance payout value is the total sum of money to be paid to your beneficiaries. According to Statista, the average life insurance payout in the United States is around $168,000. 

However, you should note that every life insurance company has its average payout.

4. What’s the Average Cost of Life Insurance in 2021?

According to Nerd Wallet, the average cost of life insurance is $27 a month. 

It is essential to state that life insurance costs vary according to age, insurer, and policy type. Life insurance is based on life expectancy. Being young and healthy means a lower premium. 

5. What’s the Total Life Insurance Claim of 2021

The impact of the pandemic is still being felt in life insurance claims. By 2021, life insurance payout recorded the highest payout to beneficiaries. 

In 2020, life insurance payout stood at over $747 billion. In another data, life insurance claims rose by 3.5x in 2021 compared to the 2020 figure. 

6. What Are The Reasons Why Consumers Don’t Purchase Life Insurance? 

While there are motives for buying life insurance, there are also deterrents. According to data, 67% of people don’t buy because of other priorities. Another 65% avoid life insurance as it is believed to be too expensive. 

Other deterrents include; do not need it, 56%; and uncertainty about products, 52%. 

7. When is the Best Time to Buy Life Insurance?

Life insurance gets expensive as you age. 

You are better off buying life insurance while in your 20s. By age 30, your life insurance quote is likely to have risen by 36%; this could shoot up by 212% by the time you are in your 50s. 

8. How are Life Insurance Rates Determined? 

Several factors are considered by insurance in setting your life insurance rates.

Leading the pack is age and gender. Other determinants are height, weight, family health history, credit score, criminal history, drug, and substance abuse. 

Key Takeaways

Ignoring life insurance can be a costly mistake. There’s no better time to start than when you are young and healthy. Whatever you do, ensure you are also not underinsured. 

Any other thing will leave your family and loved ones in a dire financial situation after you are gone. We hope that these life insurance statistics of 2022 will help you make the right decision for you and your loved ones.