Conventional wisdom often has it that Americans don't do things by halves—except, apparently, when it comes to life insurance. According to Policygenius, only 52% of American adults have life insurance. Meanwhile, nearly half of those Americans (26%) only have group coverage. While that may be better than nothing, group coverage does have its downsides. "For a start, most group policies tend to be one-size-fits-all with limited customization, which may not suit employees with specialized needs," writes Bob Gaydos of Pendella. "Another issue is the meager payouts, often between $10,000 and $50,000, amounts that typically wouldn't even cover one year's salary for the family of a departed insuree." Worse than that, group coverage rarely follows employees when they leave for another job.
Comparing group to individual life insurance, Gaydos says that many Americans "hold the mistaken belief that individual life insurance is too expensive, even though the average cost of a life insurance premium per U.S. household is just $993 a year, or less than $100 a month."
Unsurprisingly, life insurance costs vary by state, and in their recently released Cheapest States to Live in the U.S. study for 2023, education management company Scholaroo reveals where those costs are the least—and the most.
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Richard Binder
Richard Binder, based in New York, is part of the social media team at ALM. He is also a 2014 recipient of the ASPBE Award for Excellence in the Humorous/Fun Department.
