For the first time, more members of Gen X own life insurance than any other cohort, including Baby Boomers. The percentage of Gen X who owns life insurance is up from 51% in 2025 to 58% in 2026, according to the latest Insurance Barometer Study from LIMRA and Life Happens.
“It’s not surprising as Gen X becomes the cohort that is in their prime earning years, owning homes, while Baby Boomers are in that shift to retirement and a different phase of life,” said Justin Baker, associate vice president of life insurance for LexisNexis Risk Solutions.
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More Than Half of Americans Own Life Insurance
Overall, 52% of Americans own life insurance. Boomers come in just above the average, with 53% of that cohort carrying life insurance. While the percentage of Boomers carrying life insurance fell from 56% to 53%, the percentage for all other demographics rose. Forty-four percent of Gen Z adults own life insurance in 2026, compared to 42% in 2025. Exactly half of all Millennials own life insurance, compared to 49% in 2025. Baker also attributed today’s economy to the higher life insurance uptake rates, especially where Gen X is concerned.
“Things are more expensive, including housing and education, so there’s more to protect,” he said. “Despite prices being up, and there’s a lot of competition for the discretionary dollar, this cohort has made the choice that the investment is worth it.”
The need gap between how much insurance people need and how much they have also shrunk slightly this year. In 2025, 40% of adults felt they needed more life insurance; this year, 38% said they didn’t have any or enough. That’s roughly 8 million fewer adults than last year who are uninsured or underinsured right now.Group Life: An Affordable Solution
Some of the perceived barriers to purchasing life insurance are:
- Cost (45%)
- Other financial priorities (35%)
- Not sure how much or what type to buy (23%)
Baker emphasized that buying a life insurance policy is simpler than ever.
“Insurance carriers are making the investment to make the process easier,” he said. “Historically, the life insurance underwriting process took a long time and people would end up falling out.”
For those looking for an affordable policy, group life provides a solution. According to the US Bureau of Labor Statistics, 59% of private industry workers have access to group life insurance plans.
“If you have access to group life insurance, it’s an easy and affordable way to protect your family,” said Michael Cohen, CEO of The DBL Center, an insurance wholesaler. “If you’re part of the 50+ set and starting to consider your own mortality and what would happen to your spouse and children after you’re gone, group life buys peace-of-mind. It’s never too early or too late to opt in.”
How Life Insurance Needs Change as You Age
While Gen X is realizing they need life insurance and finding the money to invest, Baby Boomers may need to re-evaluate their policies as their lives change, too.
“Most people buy life insurance to protect a young family, cover a mortgage or replace lost income,” said Rob Haynie, board chair of the Life Insurance Settlement Association. “Those needs rarely stay the same over a lifetime.”
He listed some of the reasons to give your insurance coverage a glance at any age:
- Retirement
- Adult children becoming financially independent
- Adult children out of college
- Mortgage paid off
- Divorce
- Spouse’s death
“A life insurance policy is an asset, and like any asset, it deserves a periodic review to make sure it still fits with your overall financial plan and goals,” he said.
Protecting Your Investment
If you find you need to scale back on life insurance, consider your options before letting a policy lapse.
“Some group life policies, especially those with executive employee (EE) carve-outs, may be portable,” Cohen said. “Speak to your benefits advisor, HR department, or your insurance broker before you let a policy lapse if you’re changing jobs or retiring.”
You may also be able to convert your coverage to an individual permanent life insurance policy. Your benefits advisor or insurance broker can help guide you.
Private policies offer options so you won’t lose your investment even if it no longer makes sense to pay for life insurance, Haynie said.
“The first step is to sit down with a financial advisor and review every option before making a decision. You can keep the policy, reduce the coverage, surrender it to the insurer for its cash surrender value, let it lapse, or sell it on the secondary market through a life settlement,” he said. “Life settlements generally suit people 65 and older with a policy face value of $100,000 or more, though every situation is different.”
