Life insurance payouts and coverage are highest in these states

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Life insurance payouts and coverage are highest in these states

Life insurance policies play a significant role in providing financial security for beneficiaries. Over $202 billion dollars is paid out over the course of a year in the United States, according to estimates from the American Council of Life Insurers. But the extent of these payouts and the prevalence of policies vary greatly depending on state. 

To better understand these trends, SmartAsset examined life insurance data by state, examining average payouts, the number of policies in force per capita, and death benefits for the year 2022. 

Key Findings

• Life insurance payouts are highest per capita in Delaware. Relative to its population, the average life insurance payout in Delaware is $2,035 per person. Close to half of people have life insurance coverage at 0.469 policies per person—or approximately 484,000 policies in force. The average death benefit in Delaware is $250,000.
• Nevada has the lowest life insurance payout per capita. At an estimated $532 per resident, the life insurance industry pays the least out to Nevada residents, who have 0.261 policies in place per person (fourth-lowest studywide). Arkansas has the next lowest payout-per-capita at $554. 
• There are nearly as many life insurance policies as people in this state. Alabama has the highest rate of people to be covered by life insurance, with an estimated 0.940 policies in place per state resident. By this metric, Louisiana has the second highest rate of life insurance coverage at 0.787 policies per person.
• Less than one quarter of the population has a life insurance policy in three states. Oregon and Alaska are tied for the lowest rate of policies in force at 0.236 per person. Arizona has third lowest life insurance coverage at 0.242 policies per person. The payouts per person are also relatively low at $599, $638, and $606 per person per year, respectively.

SmartAsset

Top 10 Highest Life Insurance Payouts Per Capita

States are ranked based on the average life insurance payout per state resident over one year.

1. Delaware

• Dollars paid out per capita: $2,035
• Number of policies in force per capita: 0.469
• Total dollars paid out: $2.1 billion
• Total number of policies in force: 484,000
• Average death benefit: $250,000
• Population: 1,031,890

2. Iowa

• Dollars paid out per capita: $1,528
• Number of policies in force per capita: 0.530
• Total dollars paid out: $4.9 billion
• Total number of policies in force: 1.7 million
• Average death benefit: $160,000
• Population: 3,207,004

3. Minnesota

• Dollars paid out per capita: $1,394
• Number of policies in force per capita: 0.436
• Total dollars paid out: $8 billion
• Total number of policies in force: 2.5 million
• Average death benefit: $205,000
• Population: 5,737,915

4. Connecticut

• Dollars paid out per capita: $1,382
• Number of policies in force per capita: 0.387
• Total dollars paid out: $5 billion
• Total number of policies in force: 1.4 million
• Average death benefit: $287,000
• Population: 3,617,176

5. Nebraska

• Dollars paid out per capita: $1,011
• Number of policies in force per capita: 0.505
• Total dollars paid out: $2 billion
• Total number of policies in force: 1 million
• Average death benefit: $173,000
• Population: 1,978,379

6. Michigan

• Dollars paid out per capita: $927
• Number of policies in force per capita: 0.359
• Total dollars paid out: $9.3 billion
• Total number of policies in force: 3.6 million
• Average death benefit: $156,000
• Population: 10,037,261

7. New Jersey

• Dollars paid out per capita: $926
• Number of policies in force per capita: 0.377
• Total dollars paid out: $8.6 billion
• Total number of policies in force: 3.5 million
• Average death benefit: $284,000
• Population: 9,290,841

8. Pennsylvania

• Dollars paid out per capita: $903
• Number of policies in force per capita: 0.463
• Total dollars paid out: $11.7 billion
• Total number of policies in force: 6 million
• Average death benefit: $148,000
• Population: 12,961,683

9. Massachusetts

• Dollars paid out per capita: $857
• Number of policies in force per capita: 0.329
• Total dollars paid out: $6 billion
• Total number of policies in force: 2.3 million
• Average death benefit: $275,000
• Population: 7,001,399

10. South Dakota

• Dollars paid out per capita: $834
• Number of policies in force per capita: 0.540
• Total dollars paid out: $767 million
• Total number of policies in force: 496,000
• Average death benefit: $230,000
• Population: 919,318

Bottom 10 Life Insurance Payouts Per Capita

States are ranked based on the average life insurance payout per state resident over one year.

1. Nevada

• Dollars paid out per capita: $532
• Number of policies in force per capita: 0.261
• Total dollars paid out: $1.7 billion
• Total number of policies in force: 833,000
• Average death benefit: $221,000
• Population: 3,194,176

2. Arkansas

• Dollars paid out per capita: $554
• Number of policies in force per capita: 0.489
• Total dollars paid out: $1.7 billion
• Total number of policies in force: 1.5 million
• Average death benefit: $103,000
• Population: 3,067,732

3. Idaho

• Dollars paid out per capita: $560
• Number of policies in force per capita: 0.278
• Total dollars paid out: $1.1 billion
• Total number of policies in force: 547,000
• Average death benefit: $215,000
• Population: 1,964,726

4. Oklahoma

• Dollars paid out per capita: $567
• Number of policies in force per capita: 0.345
• Total dollars paid out: $2.3 billion
• Total number of policies in force: 1.4 million
• Average death benefit: $143,000
• Population: 4,053,824

5. New Mexico

• Dollars paid out per capita: $568
• Number of policies in force per capita: 0.302
• Total dollars paid out: $1.2 billion
• Total number of policies in force: 639,000
• Average death benefit: $124,000
• Population: 2,114,371

6. California

• Dollars paid out per capita: $570
• Number of policies in force per capita: 0.264
• Total dollars paid out: $22.2 billion
• Total number of policies in force: 10.3 million
• Average death benefit: $282,000
• Population: 38,965,193

7. Montana

• Dollars paid out per capita: $583
• Number of policies in force per capita: 0.321
• Total dollars paid out: $660 million
• Total number of policies in force: 364,000
• Average death benefit: $184,000
• Population: 1,132,812

8. Georgia

• Dollars paid out per capita: $589
• Number of policies in force per capita: 0.481
• Total dollars paid out: $6.5 billion
• Total number of policies in force: 5.3 million
• Average death benefit: $146,000
• Population: 11,029,227

9. Kentucky

• Dollars paid out per capita: $597
• Number of policies in force per capita: 0.464
• Total dollars paid out: $2.7 billion
• Total number of policies in force: 2.1 million
• Average death benefit: $103,000
• Population: 4,526,154

10. Alaska

• Dollars paid out per capita: $599
• Number of policies in force per capita: 0.236
• Total dollars paid out: $439 million
• Total number of policies in force: 173,000
• Average death benefit: $291,000
• Population: 733,406

Top 10 Places With the Highest Rates of Life Insurance Coverage

States are ranked based on the number of life insurance policies in force per resident.

1. Alabama

• Number of policies in force per capita: 0.940
• Dollars paid out per capita: $666
• Total dollars paid out: $3.4 billion
• Total number of policies in force: 4.8 million
• Average death benefit: $66,000
• Population: 5,108,468

2. Louisiana

• Number of policies in force per capita: 0.787
• Dollars paid out per capita: $678
• Total dollars paid out: $3.1 billion
• Total number of policies in force: 3.6 million
• Average death benefit: $85,000
• Population: 4,573,749

3. Mississippi

• Number of policies in force per capita: 0.680
• Dollars paid out per capita: $612
• Total dollars paid out: $1.8 billion
• Total number of policies in force: 2 million
• Average death benefit: $86,000
• Population: 2,939,690

4. South Carolina

• Number of policies in force per capita: 0.558
• Dollars paid out per capita: $670
• Total dollars paid out: $3.6 billion
• Total number of policies in force: 3 million
• Average death benefit: $105,000
• Population: 5,373,555

5. South Dakota

• Number of policies in force per capita: 0.540
• Dollars paid out per capita: $834
• Total dollars paid out: $767 million
• Total number of policies in force: 496,000
• Average death benefit: $230,000
• Population: 919,318

6. Iowa

• Number of policies in force per capita: 0.530
• Dollars paid out per capita: $1,528
• Total dollars paid out: $4.9 billion
• Total number of policies in force: 1.7 million
• Average death benefit: $160,000
• Population: 3,207,004

7. Maryland

• Number of policies in force per capita: 0.518
• Dollars paid out per capita: $744
• Total dollars paid out: $4.6 billion
• Total number of policies in force: 3.2 million
• Average death benefit: $145,000
• Population: 6,180,253

8. Nebraska

• Number of policies in force per capita: 0.505
• Dollars paid out per capita: $1,011
• Total dollars paid out: $2 billion
• Total number of policies in force: 1 million
• Average death benefit: $173,000
• Population: 1,978,379

9. North Dakota

• Number of policies in force per capita: 0.492
• Dollars paid out per capita: $728
• Total dollars paid out: $571 million
• Total number of policies in force: 386,000
• Average death benefit: $173,000
• Population: 783,926

10. North Carolina

• Number of policies in force per capita: 0.489
• Dollars paid out per capita: $720
• Total dollars paid out: $7.8 billion
• Total number of policies in force: 5.3 million
• Average death benefit: $133,000
• Population: 10,835,491

Bottom 10 Places for Rate of Life Insurance Coverage

States are ranked based on the number of life insurance policies in force per resident.

1. Alaska

• Number of policies in force per capita: 0.236
• Dollars paid out per capita: $599
• Total dollars paid out: $439 million
• Total number of policies in force: 173,000
• Average death benefit: $291,000
• Population: 733,406

2. Oregon

• Number of policies in force per capita: 0.236
• Dollars paid out per capita: $638
• Total dollars paid out: $2.7 billion
• Total number of policies in force: 1 million
• Average death benefit: $212,000
• Population: 4,233,358

3. Arizona

• Number of policies in force per capita: 0.242
• Dollars paid out per capita: $606
• Total dollars paid out: $4.5 billion
• Total number of policies in force: 1.8 million
• Average death benefit: $224,000
• Population: 7,431,344

4. Nevada

• Number of policies in force per capita: 0.261
• Dollars paid out per capita: $532
• Total dollars paid out: $1.7 billion
• Total number of policies in force: 833,000
• Average death benefit: $221,000
• Population: 3,194,176

5. California

• Number of policies in force per capita: 0.264
• Dollars paid out per capita: $570
• Total dollars paid out: $22.2 billion
• Total number of policies in force: 10.3 million
• Average death benefit: $282,000
• Population: 38,965,193

6. Idaho

• Number of policies in force per capita: 0.278
• Dollars paid out per capita: $560
• Total dollars paid out: $1.1 billion
• Total number of policies in force: 547,000
• Average death benefit: $215,000
• Population: 1,964,726

7. New Mexico

• Number of policies in force per capita: 0.302
• Dollars paid out per capita: $568
• Total dollars paid out: $1.2 billion
• Total number of policies in force: 639,000
• Average death benefit: $124,000
• Population: 2,114,371

8. Maine

• Number of policies in force per capita: 0.309
• Dollars paid out per capita: $682
• Total dollars paid out: $952 million
• Total number of policies in force: 431,000
• Average death benefit: $157,000
• Population: 1,395,722

9. Montana

• Number of policies in force per capita: 0.321
• Dollars paid out per capita: $583
• Total dollars paid out: $660 million
• Total number of policies in force: 364,000
• Average death benefit: $184,000
• Population: 1,132,812

10. Colorado

• Number of policies in force per capita: 0.323
• Dollars paid out per capita: $630
• Total dollars paid out: $3.7 billion
• Total number of policies in force: 1.9 million
• Average death benefit: $253,000
• Population: 5,877,610

Data and Methodology

Data comes from the American Council of Life Insurers (ACLI) for 2022 for 42 states with available data. Per capita adjustments for this SmartAsset study are derived from U.S. Census Bureau population estimates.

This story was produced by SmartAsset and reviewed and distributed by Stacker.