Expertise Publication

Life underinsurance in the US

Life underinsurance in the US: bridging the USD 25 trillion mortality protection gap

We estimate that the aggregate mortality gap in the US, a measure of life underinsurance, was close to USD 25 trillion in 2016. On a per-household basis, the gap averaged USD 495 000 or, in other words, 45% of households’ income replacement needs. The protection gap has narrowed since 2010 but remains larger than before the financial crisis of 2008‒09. We forecast that the gap will widen in the coming years if current economic and insurance market trends continue.