Nearly 100 Million Americans Say They Are Underinsured

A large share of Americans feel they don’t have enough life insurance — and a big reason is a simple misunderstanding about price. The 2026 Insurance Barometer Study, conducted jointly by industry research group LIMRA and the nonprofit Life Happens, found that nearly 100 million Americans consider themselves either uninsured or underinsured on life coverage, according to reporting by InsuranceNewsNet.

Ownership is down from a decade ago

The study reports that 51% of U.S. adults own at least one life insurance policy — down from 63% in 2011, though ownership has stabilized since a 2022 low of about 50%. In other words, roughly half of adults have some coverage, but many of them, plus those with none, still feel short of where they should be.

Where the gaps are widest

Coverage gaps are largest among younger adults, women, Hispanic Americans, and lower-income households — groups that are also among the most likely to say they need coverage. Notably, the study found men are now 11 percentage points more likely than women to have coverage, described as the widest gender gap in the study’s history.

Why the perception gap persists

Life insurance is one of the least-understood financial products, and pricing is easy to misjudge when you have never asked for a real quote. When people guess, they tend to guess high — and a number that feels intimidating becomes a reason to keep putting off a decision that only gets more expensive with age.

Who feels the gap most

The households most likely to report a coverage gap are often the ones a policy would protect most: younger families still building savings, single-income homes, and workers whose employer coverage would disappear if they changed jobs. Group life insurance through an employer or union is valuable, but it is usually modest in size and tied to the job. A personally owned policy stays with you regardless of where you work, and it can be sized to real obligations like a mortgage, income replacement, or final expenses rather than a one-size default. That difference is a big part of why so many people who technically “have coverage” still feel underinsured.

What this means for you

The practical takeaway from the Barometer data is encouraging: the perceived cost of coverage is often higher than the actual cost, and a short conversation to compare real quotes can close part of that gap. These are self-reported survey results describing the market broadly — not a statement about any individual’s situation — but the pattern is consistent year after year.

If you have been assuming coverage is unaffordable, start by replacing the guess with a number. Our free life insurance calculator gives you a quick estimate of how much coverage fits your situation, and our term life and whole life pages explain the main options in plain English. You can also browse all coverage types to see what fits. This is general educational information, not financial, insurance, or tax advice.

Sources

• InsuranceNewsNet: Life insurance premium surges, but coverage is still falling short for many (2026)
• LIMRA: 2026 Insurance Barometer Study

Frequently Asked Questions

How many Americans are underinsured on life coverage?

The 2026 Insurance Barometer Study from LIMRA and Life Happens found that nearly 100 million Americans consider themselves uninsured or underinsured. About 51% of adults own at least one policy, down from 63% in 2011.

Is life insurance as expensive as people think?

Often no. The study found 40% of Americans overestimate the cost of a basic 20-year term policy, and about 48% are only guessing. Getting a real quote is the best way to know your actual cost.

How do I find out what coverage would cost me?

Start with a free estimate using an online calculator, then compare quotes with a licensed agent. Your rate depends on factors like age, health, coverage amount, and policy type, and final approval is subject to underwriting.