The Impact of Life Insurance


Life insurance products provide vital, irreplaceable benefits:

• Financial security to two-thirds of all American families (75 million)
• Industry pays $1.5 billion per day to families and businesses, compared to $1.9 billion from Social Security
• Products provide for 20% of Americans’ long-term savings
• Life insurance policies provide $18 trillion in protection (face amount)
• Enable thousands of businesses to deliver benefits to millions of employees

 

Life Insurance in CALIFORNIA

JOBS

● 452 life insurers are licensed to do business in California and 14 are domiciled in the state.
● The life insurance industry employs approximately 70,000 people in California.
● In addition, the life insurance industry supports approximately 120,000 non-insurance jobs in California.

PROTECTION

● California residents have $3 trillion in death benefit coverage.
● State residents own 10 million individual life insurance policies, with coverage averaging $205,000 per policyholder.
● Group life insurance coverage amounts to $905 billion.
● Individual life insurance coverage purchased in 2010 in California totaled $200 billion.
● $33 billion was paid to California residents in the form of death benefits, matured endowments, policy dividends, surrender values, and other payments in 2010.
● Annuity benefits paid in the state in 2010 totaled $8 billion.

INVESTMENTS

● Life insurance companies invest approximately $565 billion in California’s economy.
● About $443 billion of this investment is in stocks and bonds that help finance business development, job creation, and services in the state.
● Life insurers provide $65 billion in mortgage loans on farm, residential, and commercial properties, and own $5 billion in real estate in California.
● In 2010, life insurers held $7.9 billion of California-related Build America Bonds, or 21 percent of these bonds issued. These bonds include those issued by the Bay Area Transit Authority, Los Angeles Unified School District and the Alameda Corridor Transit Authority.

ACROSS AMERICA

● 75 million American families depend on life insurance industry products to protect their financial and retirement security.
● The life insurance industry generates approximately 2.5 million jobs in the U.S., including direct employees, those who sell life insurance products, and non-insurance jobs supported
by the industry.
● 20 percent of American’s long-term savings is in life insurance and annuities. These savings are key to the protection and guarantees these products provide.
● In 2010, life insurers provided payments in excess of $557 billion, helping families guarantee long-term financial security now and in retirement.
● With 90 percent of the industry’s $5.3 trillion assets invested in the U.S. economy, life insurers are one of the largest sources of investment capital in the nation.
● Life insurers are the largest single source of bond financing for American business, holding 18 percent of all U.S. corporate bonds.

2012

 

Sources: ACLI calculations based on National Association of Insurance Commissioners (NAIC) 2010 annual
statement data; U.S. Bureau of Economic Analysis, 2010 data; U.S. Census Bureau, 2010 data; U.S.
Bureau of Labor Statistics, 2010 data; and U.S. Treasury Department, 2010 data.