COVID-19 driving more millennials to buy life insurance than Gen X & Boomers, study finds

As the pandemic continues across the U.S., it is pushing more Millennials to look into life insurance. (iStock)

More Americans would purchase life insurance over the next year due to the effects of the coronavirus pandemic, according to a recent study, and one generation in particular has had its perspective changed the most.

According to initial findings from the 2021 Insurance Barometer Study, nearly half of millennials surveyed (45%) said they're now more likely to buy life insurance coverage because of the global pandemic. That amount far exceeds Baby Boomers and Gen X individuals who would do the same, at 15% and 31%, respectively.

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

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What effect does the pandemic have on peoples' lives?

About two-thirds of millennials surveyed said that they have dependents under the age of 18 living in their home. This increase in beneficiaries could explain the reason for 43% being more concerned than other generations about leaving their families in a difficult financial situation after the spread of the virus this year.

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

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Americans value life insurance more

While the impact of the pandemic has been tragic, it has also taught younger generations the value of financial decisions like purchasing life insurance, the study showed.

"Despite the record-low life insurance ownership, Americans’ intent to purchase life insurance is at an all-time high," said Faisa Levenson Life Happens president and CEO.

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

The life insurance industry is working to help Americans find the best coverage, which can 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.

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