How people use life insurance as an act of service

How people use life insurance as an act of service

It may not be as romantic as getting flowers or wining and dining your partner, but long-term couples who combine their finances might discover that life insurance coverage can be a valuable act of service.

And while there are plenty of barriers to getting coverage, life insurance can serve as a safeguard for committed couples seeking to protect their partner’s financial future, including the ability to pay the bills, send the kids off to college, and even pay off the mortgage after their passing.

Life Insurance Coverage as an Act of Service

In LIMRA’s 2025 Insurance Barometer Study, U.S. policyholders cited several relationship-centered reasons for owning life insurance, including covering their family’s financial expenses (60%), transferring wealth or leaving an inheritance (42%), and replacing the lost income of a wage earner (26%).

As cost of living rises and job market uncertainty grows, it’s not surprising that long-term couples are engaging in a different kind of act of service: protecting their partner’s ability to pay their bills with life insurance coverage. In fact, 40% of adults say their loved ones would be barely or not at all financially secure should the primary wage earner die unexpectedly, Everly Life reports.

What makes life insurance different from other acts of service — like doing the dishes or giving a partner the night off from the kids — is that it provides for one’s family even after the policyholder dies. This makes the act of getting life insurance coverage a meaningful way for partners to provide financial protection for their loved ones even after they’ve passed.

Big Milestones Still Drive Life Insurance Purchase – With One Surprising Exception

Major life events still trigger most policy purchases for U.S. adults, including:

• Death of a relative or loved one (21%)
• Giving birth or adopting a child (12%)
• Getting married (9%)
• Retirement (6%)

One exception? The pandemic created a surge in demand for life insurance coverage, with 15% of policyholders reporting they bought a policy because of COVID-19. Of these consumers, one-third under the age of 30 said COVID-19 was the reason they bought a policy.

Persistent Perceptions Remain a Barrier to Coverage

In 2024, 42% of U.S. adults admitted to not having enough — or any — life insurance coverage, despite seeing the need for it. Given that this group is already aware of the benefits of protecting loved ones with a policy, why does this coverage gap exist?

Educational content is failing to break through. A staggering 90% of people who see the need for life insurance — but haven’t purchased — want to better understand life insurance before buying. Interestingly, only two-thirds of that same cohort took steps to learn more about the product.

This could mean that educational content about life insurance isn’t showing up in the channels where would-be policyholders spend their time (and money).

However, it’s more likely that educational content in the insurance industry may already suffer from the perception that it’s too complex or difficult to understand. As a result, consumers are opting out of educating themselves before they’ve even started.

Young adults overestimate coverage costs. U.S. adults 30 and younger overestimate coverage costs by 10-12x, resulting in consumers pricing themselves out of life insurance before they’ve even considered buying it.

This pricing misconception remains one of the biggest challenges the life insurance industry faces, with more consumers demanding pricing transparency and the ability to quickly see coverage costs.

Consumers are conscious of their budget. When money is tight, U.S. adults often forgo life insurance coverage, with Gen X (52%), Millennials (48%) and Gen Z (39%) cohorts reporting they didn’t buy a policy because they had competing financial priorities.

Life Insurance: The Gift of Long-Term Commitment

For long-term couples looking for ways to show their commitment to each other, life insurance can present the gift that keeps on giving. It essentially tells your loved one that you’re ready to take care of them for life — even after you pass.

This story was produced by Everly Life and reviewed and distributed by Stacker.