Determining the Right Amount of Life Insurance

Navigating the Life Insurance Landscape in 2025

As we move through 2025, life insurance remains a cornerstone of financial planning—yet it's often misunderstood or overlooked. Updated data continues to shed light on key trends, revealing both opportunities and challenges in ensuring families have the protection they need. Whether you're evaluating your own policy or advising others, understanding the current landscape is essential.

The State of Coverage

More than half of Americans—52%—currently own life insurance. However, approximately 102 million individuals still face coverage gaps, leaving many families financially vulnerable. The 2024 LIMRA Insurance Barometer Study highlights this growing need for education and engagement, particularly as financial uncertainties persist.

Addressing the Gender Gap

One of the most striking findings is the disparity in coverage among women. An estimated 54 million women say they need life insurance or more of it. In fact, women are more likely than men to be seen as needing coverage (45% vs. 39%). Bridging this gap will require thoughtful outreach, tailored solutions, and greater accessibility to policies that align with women’s unique financial roles and responsibilities.

Why People Delay

Cost concerns top the list of reasons people avoid purchasing life insurance, with 72% citing affordability as a barrier. Others point to competing financial priorities (54%) or a lack of understanding about coverage types and needs (52%). Perhaps most telling, only 1 in 4 Americans accurately estimates the cost of a 20-year, $250,000 term life policy for a healthy 30-year-old—underscoring the widespread misconception that life insurance is out of reach.

The Impact on Lower-Income Families

Among households earning less than $50,000 annually, 56% identify cost as the primary hurdle. Many of these individuals rely on rough estimates or assumptions, rather than facts, when evaluating insurance expenses. Breaking through these misconceptions with clear, personalized information is key to broadening access and fostering financial resilience.

Making Coverage Work for Every Family

Life insurance shouldn't feel like a luxury—it should be part of a family’s financial foundation. The right strategies can help individuals secure appropriate coverage within their means, offering peace of mind without sacrificing other priorities. As financial professionals, it’s our role to help families navigate options confidently and cost-effectively.

Moving Forward in 2025

Securing life insurance is one of the most meaningful steps individuals can take to protect their loved ones. As we navigate 2025, take the time to revisit your policy—or initiate a conversation about getting started. Consult with a trusted advisor, run a coverage needs analysis, and share these insights with family members. Awareness and action today can make all the difference tomorrow.