Domonique Rodgers is an alumnus of NC State and the President of Family First Life Golden State. As a life insurance professional, Rodgers is often surprised by misconceptions held about the industry ranging from how easy or difficult it is to get covered, to how common or rare policies are among a person’s family and friends. The TV commercials don’t do a good job telling the whole story, so below Dominique Rodgers of NC State shares some of the lesser knows aspects of life insurance.
Domonique Rodgers of NC State explains that if you’re part of the approximate 165 million Americans with life insurance, you may take for granted just how remarkable it really is. Every year, life insurance helps families around the world cover funeral costs, pay off outstanding debts, and incur the loss of a breadwinner. Yet, you probably didn’t know these other life insurance statistics.
Life insurance is more faceted than you might think. From the varying coverage gaps to the millions of people who sadly waffle at the last minute and the vast sums of money invested in insurance, it’s often overlooked how broad reaching the industry really is.
Domonique Rodgers of NC State takes a look at a handful of the surprising life insurance stats you probably never realized. When you’re done reading, don’t hesitate to contact Family First Life with more of your questions.
Millions of Customers Back Out of Buying Insurance at the Last Minute
Every year, it’s estimated that around 20 million potential buyers back out of purchasing life insurance at the last minute. They go through the process of filling out the forms, sharing their personal information, and then, at the last minute, back out and never complete the process. That number is equal to around 5% of the U.S. population, which we think is way too high.
The good news is that it’s starting to go down according to Domonique Rodgers of NC State. Within the last few years, more and more Americans have signed up for life insurance, likely because of more accessible no medical exam coverage plans. Before, people would make it through the application process only to learn that they could be denied based on a medical exam. Today, more and more Americans can get the coverage they need.
The Life Insurance Industry Accounts for $7 Trillion in Assets
Elon Musk, Jeff Bezos, and Bill Gates are three of the wealthiest men in the world. Their combined net worths account for roughly $500 billion—more than the GDPs of Greece, Ukraine, and New Zealand combined. Yet their assets are mere pennies compared to the vast sums of money invested in life insurance explains Domonique Rodgers of NC State.
As of 2018, the American life insurance industry accounted for $7 trillion, which is roughly equal to the combined GDPs of India and Germany. To put that in perspective, these two countries are the 4th and 5th largest economies in the world, only rivaled by Japan, China, and the United States. The single largest insurer accounts for more than $1.7 trillion alone.
As impressive as these numbers are, though, Domonique Rodgers of NC State says they only account for a portion of the global life insurance industry. The combined international net value of insurance is likely incalculable but surely rivals even the wealthiest of nations’ economies.
There is a Gender Gaps of Sorts in Life Insurance
When people talk about the gender gap, they’re usually talking about the difference between what men and women are paid for the same quality of work. Yet, the gender gap extends beyond just wages. It also stretches into life insurance in a handful of ways.
Domonique Rodgers of NC State notes that an example of a life insurance gender gap is that far more men are insured than women. A 2019 survey found that 62% of American men were covered by some form of life insurance while only 56% of women were covered. That 6% difference accounts for roughly 10 million fewer women with insurance compared to men.
Domonique Rodgers of NC State explains that this gap is most concerning because women make up a huge portion of household incomes. If they were to suddenly die, the impact on their family’s financial standings would be huge. What’s worse, though is that this statistic is underscored by the fact that insurance is often cheaper for women.
Compared to men, women pay around 20% less for life insurance than their male counterparts according to Domonique Rodgers of NC State. Women generally live longer than men and have fewer health issues, making them less of a liability to insure. Although this highlights another gender gap, it plays to women’s favor and hits home that more women should get life insurance.
As shocking as it is, many women are underinsured because they still make less than their male counterparts and don’t always prioritize life insurance when budgeting. As women’s wages go up, it’s expected that more women will get the coverage they need.
Final Thoughts
You may think you know all there is to about life insurance, but in truth, it’s a massive industry that accounts for trillions of dollars of the world economy. Although millions of people remain uninsured every year, those numbers are slowly going down as no medical exam coverage becomes more accessible and consumers become more educated about their options.
