COVID-19 pushes more millennials to buy life insurance than Gen X and baby boomers, study finds

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As the pandemic continues in the United States, it is pushing more and more Millennials to turn to life insurance. (iStock)

According to a recent study, more Americans will buy life insurance in the next year due to the effects of the coronavirus pandemic, and one generation in particular has seen their perspective changed the most.

According to the first conclusions of the 2021 Insurance Barometer study, nearly half of millennials surveyed (45%) said they were now more likely to purchase life insurance due to the global pandemic. This amount far exceeds the baby boomers and Generation X individuals who would do the same, at 15% and 31%, respectively.

In fact, the study, conducted by industry professional associations LIMRA and Life Happens, found that 31% of Americans overall would be more likely to purchase life insurance in the next 12 months.

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What effect is the pandemic having on people’s lives?

About two-thirds of millennials surveyed reported having dependents under the age of 18 living in their homes. This increase in beneficiaries could explain why 43% are more worried than other generations about leaving their families in dire financial straits after the virus has spread this year.

“COVID-19 has raised awareness of the important role life insurance plays in the financial security of families,” said David Levenson, President and CEO of LL Global, LIMRA and LOMA. “Our research shows that 42% of Americans would face financial hardship within six months if the primary employee were to die unexpectedly.

If you want to purchase life insurance policies after the peak of the COVID-19 outbreak, comparing several types of insurance could help you save money. Visit Credible to fill out your information once and find the best life insurance companies for you.

Americans place more importance on life insurance

While the impact of the pandemic was tragic, it also taught younger generations the value of financial decisions such as purchasing life insurance, the study showed.

“Despite the record number of life insurance owners, Americans’ intention to purchase life insurance is at an all time high,” said Faisa Levenson, President and CEO of Life Happens.

Only 52% of American adults reported having life insurance coverage in 2021, but 73 million Americans (59%) said they needed life insurance. About 29 million policyholders say they need to increase their current life insurance coverage, according to the study.

The life insurance industry strives to help Americans find the best coverage, which may depend on the financial situation of each individual. Visit Credible to compare multiple providers and find the one with the best premium payments for you.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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