Life Insurance Payouts and Coverage Are Highest in These States – 2025 Study
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.