Life insurance is not a new concept, but its popularity seems to ebb and flow. To get a better sense of where life insurance sits in the American consciousness, CivicScience took a look at this year’s data. The gist: in the era of the pandemic, life insurance interest has grown.
Currently, 48% of U.S. adults have a life insurance policy with no plans to get another one, while 23% don’t yet have a life insurance policy, but are planning to enroll. Another 29% have no interest in a life insurance policy at all.
Compared to the same timeframe in 2020, the percentage of those who are seeking to enroll in a policy has seen a marked increase.
Does Money Matter?
When it comes to income, those who earn $100k or more a year are the most likely to already have a life insurance policy. Meanwhile, those who earn under $50k are both the most likely to plan on enrolling, while also being the most likely to have zero interest.
In a similar vein, those who are financially better off are the most likely to intend to get life insurance, suggesting that financial standing may impact incentive, and no doubt ability, to buy a policy.
Younger Adults More Interested Than Before
Taking a look at age, you can see a sizable shift in mentality over the last two years. In 2020, young adults under age 30 were the most likely to not have a life insurance policy and to not be interested in one either. In 2022, however, the tables have turned, as this age group is now the most interest in enrolling in a policy. There was substantial growth among the 30 to 44 year old age group as well.
Parents Seek Policies — But Parental Stage Matters
One potential factor influencing growing interest in life insurance among younger adults may be parenthood. As the data show, parents are the most likely to have or intend to get life insurance. But amongst parents, the younger their children, the higher their desire to enroll in a policy. However, the newest of parents are also the least likely to be interested right now. So while many who have a young infant or toddler may show the most interest in buying a life insurance policy compared to their parental counterparts, a size-able chunk of them may not feel they are in the life stage to think about it right now, which could be an area for insurance companies to focus.
COVID + Life Insurance
Of course, parenthood isn’t the only factor that could be impacting Americans’ desire for life insurance. A brush with COVID also appears to turn up the incentive for enrolling in a life insurance policy.
Interest in life insurance is clearly on the rise. Especially for those who may be feeling an increased sense of pressure, whether as a result of parenthood or after a close-encounter with COVID, these policies may be offering a much-needed peace of mind.