Life Insurance Facts & Figures

Life insurance


Life insurance provide financial protection in lieu of specified premium. It is a king of insurance wherein life itself gets protected from the uncertainties and unexpected incidents in one's life.


95 Million US Adults don't have any life insurance at all

(That's 41% of the population)

61% of men have some sort of life insurance coverage

57% of women have some sort of life insurance coverage

American behavior. In percentage.


of Americans say that life insurance is something most people need.


of Americans admit they do not have adequate life insurance coverage


of Americans own an individually purchased life insurance policy

Many expert recommend at least



your gross Annual Income

in coverage

Average recommended vs average owned. In dollars.


Average recommended life insurance coverage


Average amount owned


Average amount of insurance coverage

on married men


Average amount of insurance

coverage on married women

Death causes


Heart disease

1 in 5 deaths


1 in 7


1 in 24

Motor vehicle accident

1 in 84


1 in 119


1 in 218

Firearm assault

1 in 314

Pedestrian accident

1 in 626


1 in 1,008

Motorcycle accident

a in 1,020

Fire or smoke

1 in 1,113

Bicycling accident

1 in 4,919

Air/space accident

1 in 5,051

Accidental firearm discharge

1 in 5,134

Accidental electrocution

1 in 9,968

Alcohol poisoning

1 in 10,048

Hot weather

1 in 13,729

Hornet, wasp, or bee sting

1 in 56,789

Legal execution

1 in 62,468


1 in 79,745


1 in 117,127


1 in 144,156

Fireworks discharge

1 in 340,733


The major reason for purchasing life insurance is to guarantee the continued financial support of loved ones who depend on the insured in the event of the insured's death.

Six reason

You might need life insurance

-To replace one's ability to earn income

-To replace one's ability to care for others

-To pay for expenses arising as a result of a death

-To provide for special business needs

-To fund a charitable interest

-To provide supplemental income later in life

Life Insurance Needs curve

Life begins


Marriage/First Home


Peek Earnings & Asset Accumulation

Debt Reduction


Retirement & Wealth Transfer

Three attributes

Life insurance has three attributes:

The death benefit

The premiums

The span of years over which you pay the premiums

Six Factors

In order to accurately estimate the amount of life insurance needed, here are some of the factors that must be considered.

-The future expected income of the insured

-Existing debts

-Expected future spending, including non-routine costs like college

-Future Social Security or pension benefits

-Like;y costs associated with an individual's death, including estate taxes and funeral expenses

-Lifestyle changes that might be made by the survivors in the event of the death of the insured


The two most common types of life insurance are:

Term life insurance

-Provides coverage for a specific amount of time

-It has a monetary value that is paid to the named beneficiary in the event that the policy holder dies.

There is a premium paid on the policy each year in order to keep it active.

This form of insurance does not grown in cash value and is not used as an investment.

Main reasons to choose term life insurance:

-Their main concern is to cover the income earned during their working years

-The money saved for choosing term over whole life insurance could be put to better use during the insured's lifetime

-Large face value for small premium payments

Whole life insurance

-Also considered "permanent" insurance

-It is in effect for the life of the policyholder, as long as the premiums are paid when specified

-It also pays on the value of the policy upon the death of the policyholder, however, this kind of insurance can grown in value over time.

Main reasons to choose whole life insurance:

-Using for Inheritance

-Insurance coverage for life

-Installment or lump sum payments

-Convert to an annuity

Main Purpose(s)

Term life insurance

Short-term financial liabilities

Whole life insurance

Long-term financial liabilities and cash accumulation


Term life insurance

Lower when initially purchased, increases with age based on term duration

Whole life insurance

Initially higher than term premiums, but often level for life

Coverage Duration

Term life insurance

Limited time - generally for 5 to 30 years or 75-85 years old

Whole life insurance

Lifetime, as long premiums are paid

Cash Value

Term life insurance


Whole life insurance

Accumulates over time on a tax-deferred basis

Access to Cash Value

Term life insurance

Not Applicable

Whole life insurance

Yes, through loans and withdrawals*

Key advantage

Term life insurance

Typically offers the highest death benefit for the lowest cost

Whole life insurance

Offers lifelong protection and tax-deferred savings

*Certain limitations may apply to loans or withdrawals.

Policy loans and withdrawals will reduce the benefit and cash values, and my be taxable under certain circumstances

Life Insurance Premiums

Whole life Insurance premiums remain the same for your "whole life"

Life Insurance Comparison

Death Benefit

Term Life, Whole Life, Universal Life, Variable Universal Life

Flexible Payment

Universal Life, Variable Universal Life

Invested in Market

Variable Universal Life

Cash Value Guaranteed

Whole Life, Universal Life

Tax Advantages

Term Life, Whole Life, Universal Life, Variable Universal Life

Low Monthly Cost

Term Life

Which type of insurance is purchase depends on:



Finances of the purchaser


Like any other insurance policy, your life insurance premium is determined by several criteria.

Major influences


Physical/Health Condition

Some other influences


Risky or Hazardous Sports


Lifestyle Smoker/Drugs

Type of Policy

It never pays to fool the insurance company since these companies are expected to know their field and, if even a small amount of fraud is determined, your claim may be denied when the time comes for your heirs to collect it.


The list is long. Here are some of the most popular life insurance companies.


American General Life Companies

Genworth Financial



Banner Life

Companion Life

American Nation Family of Companies


John Hancock

Lincoln Financial Group

No one life insurance product is better than the other.

You have to determining what is best for you based on a wide variety of factors.

Life Insurance Facts & Figures

shared by steverusso on May 07, 2012 in Health


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Here is an interesting info graphic that will show some great facts from death causes to types of life insurance. Interesting enough, it has been said that over 95 million US adults don't have life in...
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