Life Insurance 101

Are You Covered by Your Life Insurance?

There’s a substantial gap between how much life insurance many Americans have and how much they need. And being underinsured can have a significant impact on a family in the event of an unexpected passing.

Does Your Life Insurance Have Your Back?

When it comes to life insurance, many Americans are unaware that they’re underinsured.

Six in 10 Americans have purchased some form of life insurance.1

And 85% believe that adequate life insurance is important for financial peace of mind..1

Yet, the reality is that those who have life insurance coverage often possess only a fraction of what they need.

The American Council of Life Insurers recommends that Americans purchase a policy with value equal to 7 to 10 times their annual income.2

Why the Gap?

People have a variety of motives for buying life insurance. The four most cited reasons include:

  • To help provide for a spouse or children
  • To help protect income
  • To help pay for a mortgage
  • To help cover burial or cremation costs

129.7 million Americans have not purchased life insurance.3,4

Top reasons why people don’t plan on buying life insurance.1

  • Don’t see a need at this point (73%)
  • Other financial priorities (72%)
  • Belief that employer-provided coverage is enough (60%)
  • Haven’t thought about it (56%)

Consumers tend to overestimate the cost of a life insurance policy

Financial Impact of Losing a Spouse

Here’s how long people believe it would take to feel the financial impact.1

  • Don’t know (13%)
  • 1 month or less (29%)
  • 6months or less (46%)
  • 12 months or less (59%)

At its most basic level, the purpose of life insurance is to help provide peace of mind and help protect your loved ones from financial hardship in the event of your unexpected passing. Review your coverage today to see if it’s enough to help protect the ones you care about most.


1. 2016 Amica Life Financial Peace of Mind Survey, 2016.
2. Life Insurers Fact Book, The American Council of Life Insurers, 2016.
3. 2016 Insurance Barometer Study, LIMRA and Life Happens, 2016.
4. U.S. and World Population Clock, U.S. Census Bureau, 2016.

ALIC17717 (exp. 9/18)

Not sure how much coverage you need? Get a clearer picture of your financial situation with the life insurance needs calculator.

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