Data referenced in this article is drawn from Empathy's original research report, The Hidden Barriers to the Great Wealth Transfer.
Most families believe they’re protected. The life insurance statistics say otherwise.
For life insurance carriers, this presents both a business risk and a significant market opportunity.
And the timing matters: not only is the Great Wealth Transfer already in motion, but search demand for life insurance is also up 83% year over year, with quote-related searches rising nearly 27%.
Consumer intent is accelerating. The question is whether your distribution model and product positioning are keeping pace. The following data highlights key insights for carriers seeking to close the coverage gap.
How many people have life insurance?
47% of consumers personally own life insurance, but only 21% have updated beneficiary designations.
Our research found that:
47% of consumers personally own life insurance
34% report a spouse or partner owns coverage
Only 18% have long-term care or disability coverage
30% have life insurance listed as a document in their estate plan — but 53% of existing documents would not be usable today
Only 21% have updated beneficiary designations
For carriers, these estate planning statistics are significant. They reveal that simply owning a policy does not guarantee real protection, and that many people have policies they do not fully understand. The product exists, but the necessary support often does not.
How people think about life insurance and what it means for positioning
58% now view life insurance as either essential protection or a key component of estate and legacy planning.
Our research indicates that people view life insurance as more than just protection, and their motivations are more nuanced than the industry typically assumes.
When asked about the role of life insurance in their planning:
30% view it as an important component of legacy and wealth transfer planning
28% view it as critical to protecting income, dependents, or obligations
Overall, 58% now view life insurance as either essential protection or a key component of estate and legacy planning. However, perceptions vary significantly by wealth tier:
48% of HNW families view life insurance as important for legacy and wealth transfer
45% of mass-affluent families share that view
40% of middle-class families agree
Only 12% of lower-wealth families see it as relevant
For many affluent and high-net-worth families and individuals, life insurance is already considered a tool for wealth transfer. Carriers who align their products and messaging with this perspective are effectively meeting buyer expectations.
For carriers serving lower-wealth families and individuals, the priority should be education and demonstrating how life insurance can serve as a planning tool rather than just a payout. Addressing this gap will help more people access the support they need and expand market reach.
The Great Wealth Transfer timeline is tighter than most carriers realize
The industry often treats the Great Wealth Transfer as a future event, but our research shows it is already in motion.
9% of families say wealth transfer is already occurring
11% expect it within the next year
20% expect it within 2–5 years
19% expect it within 6–10 years
18% say timing is unpredictable — it could happen at any moment
For carriers, this compresses the runway considerably. Families within 7 years of a wealth transfer event need the right coverage, the right documents, and the right support now.
The outcomes families are anticipating underscore the stakes:
Only 28% expect wealth transfer to go smoothly as intended
53% anticipate some form of complication: administrative issues, delays, conflict, unintended financial outcomes, or confusion and misalignment
Execution as the differentiator
The overall outlook is positive, but carriers will differentiate themselves by executing on what people actually want.
From death benefit to living benefit
People want policies that offer real value now, not just in the future. Millennials and Gen Z aren’t turning away from life insurance — they just expect it to be transparent, fast, and useful today. For those under 40, a policy that only pays out at death doesn’t build a relationship. Carriers who offer living benefits like planning tools and document support will earn lasting trust with the next generation of wealth holders.
From product to estate planning tool
Estate planning as a living benefit may be the most compelling offering to date. Policyholders are already connecting life insurance to legacy and view it as part of a comprehensive estate plan rather than a standalone purchase. If carriers can support policyholders on easily updating beneficiaries, organizing documents, and create the feeling that they are actively using their policy, retention improves.
The claims moment as a growth moment
There’s one moment when trust is at its peak: the claims process. Too often, carriers treat this as the end of the journey. But when people get real support they see your brand as a partner, not just a transaction. Carriers who offer meaningful bereavement support during the claims process have seen beneficiary reinvestment rates increase up to three times. The claims process is your untapped marketing channel.
The bottom line
These life insurance facts show that the real issue isn’t just coverage, it’s preparedness. Some people will move through loss with clarity and support. Others will face the hardest weeks of their lives trying to untangle financial issues that could have been solved long before.
At Empathy, we partner with life insurance carriers to deliver the tools, guidance, and support people need to navigate estate planning, loss, and major life transitions. If you are a life insurance leader seeking to close the preparedness gap and better equip your distribution partners during the Great Wealth Transfer, connect with us.
Research & Methodology
Data referenced in this article is drawn from Empathy's original research report, The Hidden Barriers to the Great Wealth Transfer. The study was developed in partnership with Censuswide. The findings are based on a large-scale, dual-audience research study conducted between January and February 2026, using anonymous responses from adults across the United States, Canada, and the United Kingdom.