7 ways you can help close the life insurance gap

Just over half of Americans have life insurance, leaving about 102 million adults uninsured or underinsured. Many believe they need more coverage, creating a significant gap—and an opportunity for agents.

Just over half of American consumers currently have some form of life insurance. Approximately 100 million adults in the United States — 40% of the adult population -- self-report as uninsured or under-insured, and believe they need more life insurance.¹

This adds up to a significant life insurance gap, offering many opportunities for insurance agents and financial professionals to help consumers better protect their families.

Here are seven ways you can be part of the effort to close the insurance gap:

1. Build on momentum.

Since the pandemic, life insurance sales have surged -- in fact, LIMRA reports four years of unusually strong expansion.² Inflation is expected to moderate this growth to a degree, but the post pandemic mindset persists³ -- and now is the time to help clients tackle financial and insurance goals with fresh eyes.

2. Understand the heightened awareness that the pandemic has caused.

According to LIMRA, COVID-19 made consumers more aware of the importance of life insurance -- and this mindset has persisted.⁴ Although 51% of Americans currently own some type of life insurance, 40% feel they need to buy more.⁵

3. Help consumers overcome misconceptions about the cost of life insurance.

The majority of those who don’t own life insurance know they need it. They just believe it’s too expensive. Younger people and people who currently don't have life insurance are especially likely to believe it's more expensive than it is.⁶ Talking real numbers and delivering quotes can help people get a better picture of life insurance costs.

4. Lead clients through conversations about budget priorities.

Daily essentials, health care expenses, education, savings and investments: consumers frequently cite all of these as budget priorities.⁷ One of the best things you can do is to get an aerial view of your client's spending and saving profile. Have a frank discussion on priorities and work with them to place life insurance on the priority list alongside other important expenses.

5. Educate consumers about what is adequate coverage for their needs.

According to LIMRA, 47% of households surveyed said they would face financial hardship within six months if the primary wage earner died prematurely, while 40% said their family would be barely or not at all financially secure should the primary wage earner die suddenly.⁸ That's a sobering statistic, and one reason why you need to help clients and potential buyers see themselves in the data. Using a needs analysis process can help your client understand the amount of coverage they truly need.

6. Dispel common myths about life insurance.

About 60% of consumers⁹ think that life insurance is mainly for burial costs. They don't realize that life insurance can help replace income, pay for long-term care in retirement, provide a way to leave a legacy and/or pass on an inheritance. People who receive life insurance death benefits do not have to pay taxes on the money. But about one-third of consumers don't know this and assume life insurance benefits are taxed. It's important to educate clients about the details of how life insurance works.

7. Balance digital and in-person with millennial clients and Gen Z.

Younger adults do their research online: 80% of millennial and Gen Z respondents say they first turn to social media, apps, and AI to learn about financial products like insurance. But when it comes to making a purchase, they still want to speak with a live expert who can consider their individual needs and help ensure they make the right decision.¹⁰ Lean into both of these assets: use your online presence to streamline and educate, and your one-on-one time to listen and customize.

Sources:

¹ 2025 Facts About Life Insurance Sheet

² LIMRA Forecasts Individual Life Insurance Premium to Grow in 2026

³ LIMRA Forecasts Individual Life Insurance Premium to Grow in 2026

⁴ LIMRA Forecasts Individual Life Insurance Premium to Grow in 2026

⁵ 2025 Facts About Life Insurance Sheet

⁶ 2025 Facts About Life Insurance Sheet

⁷ 2025 Facts About Life Insurance Sheet

⁸ 2025 Facts About Life Insurance Sheet

¹⁰ 2025 Facts About Life Insurance Sheet

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