4 Ways to Bridge the Life Insurance Coverage Gap

• By: Olivia Overman
• August 24, 2026

While growth in the life insurance market was significant in 2025, 40% of American adults—almost 100 million people—believe they need more life insurance, according to the LIMRA “2025 Insurance Barometer Study.”

“Despite roughly half of U.S. consumers having some form of life insurance, a significant protection gap remains, depending on how it’s measured,” says Anthony Ferraro, senior vice president and chief pricing officer, Munich Re Life U.S. “The fact that nearly half of consumers remain uninsured underscores continued opportunity and evolving demand.”

For agents operating in today’s market, understanding why coverage gaps persist—and why certain products, such as indexed universal life, continue to gain traction—can help guide more effective strategies.

“Most consumers understand the basic purpose of life insurance, but as product complexity increases, clear communication and education become essential in the sales process,” Ferraro says. “This is where education and transparency continue to be critical. Helping consumers understand not just what they’re buying, but how a product performs under different scenarios, is essential to building confidence and ensuring the coverage aligns with their needs.”

Rising sales and premium volumes during 2025 indicate that consumers are seeking financial protection, especially during economic uncertainty and concerns about long-term financial security.

Yet, a knowledge gap is hindering further growth. “Misperceptions around the cost of life insurance deter too many Americans from securing life insurance and represent a clear opportunity for agents to not just reframe the conversation with clients but also surprise them with just how affordable coverage can be,” says Eric Tarnow, head of life insurance at Corebridge Financial.

“In research we conducted last year, consumers were asked to estimate the monthly price of a 20-year, $250,000 term policy—typically around $13. Only 10% identified the correct amount, while nearly a quarter believed it cost more than three times as much,” he says.

Here are three ways agents can offer their clients coverage in line with their needs and budget:

1) Understand coverage options. “Agents need to ensure that they fully understand the products they’re selling by leveraging expertise within their organization,” Ferraro says. “That foundation is critical.”

Agents who are proficient in the options available to meet people’s needs and budgets will be able to put their best foot forward in offering coverage, especially as they look to meet the 70% of consumers who either have or are actively seeking a financial professional to help manage their finances, according to LIMRA.

2) Stay within legal and ethical boundaries. When offering coverage, agents need to ensure that they clearly understand what a life insurance product can and cannot do, as well as the rules governing how it can be explained or marketed.

“It’s important to be clear on the parameters and constraints of how products can be positioned,” Ferraro says. “While it may not be the most compelling aspect, strong adherence to compliance is essential.”

3) Embrace technology. Most Americans use the internet when shopping for life insurance, with 92% of consumers researching life insurance online in 2025, up from 71% in 2015, according to LIMRA. Further, nearly half of younger adults (45%) follow a financial advisor on social media to get information, while more than a third follow an insurance company.

Agents who can leverage technology to deliver modern, tailored solutions will be more likely to build trust, improve customer experience and drive coverage growth.

4) Understand the client. “Each customer’s situation is unique, and agents can really demonstrate their value by tailoring their recommendations to an individual’s specific circumstances,” Tarnow says. “Agents who anchor conversations in clients’ real-life—family, milestones and long-term goals—are far more likely to build trust and move clients to act. Sharing your own personal experiences or relevant client examples can turn general ideas into specific moments of connection and meaning.”

 “Taking the time to clearly define their needs, and articulating how a product addresses those needs, may sound basic, but it is fundamentally what drives better outcomes and stronger client understanding,” Ferraro says.

 Olivia Overman is IA content editor.