Can you own life insurance and not even be aware of it? This is a central question addressed by LIMRA's 2024 Life Insurance Ownership Study, which aims to examine the growing disconnect between consumers and their awareness of life insurance coverage. Published intermittently since 1960, the study has evolved to reflect technological advancements, changing consumer behaviors, and societal shifts. The goal is to better understand why many individuals seem unaware of their life insurance policies, particularly when provided as a workplace benefit.
The first versions of the study were conducted through in-person interviews with American adults. In the early days, life insurance was one of the few products offering income protection and wealth transfer, making it a straightforward concept for consumers. However, the landscape has changed drastically since then. By the 1980s and 1990s, surveys shifted to mail and, later, online formats. During this period, workplace life insurance benefits became more common, and 401(k) plans began replacing pension plans. Despite these changes, the understanding of personal life insurance ownership remained relatively high until the mid-2010s, when a noticeable disconnect started to emerge between industry estimates and consumer awareness.
This gap in awareness can be attributed to several factors. Between 2010 and 2016, workplace life insurance coverage expanded significantly, but consumer surveys did not show a corresponding increase in awareness. The rise of smartphones, shorter attention spans, and distractions from constant connectivity have made it more difficult for surveys to yield accurate results. Moreover, the shift to remote work, the decline of in-person benefits fairs, and the reliance on emails have made it harder for employers and carriers to engage employees in meaningful discussions about their benefits.
The 2024 LIMRA BEAT Study reveals that 36% of American workers are uncertain about whether they are offered or even own life insurance through their employer. This reflects a broader trend where many consumers fail to accurately report their own policies, with significant discrepancies between industry estimates and self-reported data. The study highlights that the lack of awareness about workplace life insurance is a pressing issue, as many workers are unaware of the value or the carrier of their policy. This disconnect between employees and their benefits suggests a need for more proactive communication to ensure that employees fully understand the value of the life insurance coverage their employers provide.
As the world becomes more complex and fast-paced, ensuring that employees are aware of their life insurance benefits is increasingly important. Employers, human resources professionals, and insurance carriers need to move beyond annual emails and provide continuous, engaging communication throughout the year. By offering multiple touchpoints and raising awareness about the value of life insurance, organizations can help employees appreciate the security these benefits provide. With this heightened awareness, employees can make better-informed decisions about their benefits, ensuring that both they and their loved ones are better protected.
