Life insurance is losing its appeal in the US. In 1965, Americans purchased 27 million policies, individually or through employers. In 2016, a population that was more than 50% larger still bought only 27 million policies. The share of Americans with life insurance has fallen to less than 60%, from 77% in 1989. Why this is happening remains a puzzle.
People buy life insurance for various reasons: to pass wealth along to future generations, to provide liquidity for mortgage payments, or to cover funeral expenses, to name a few. These motivations may become more or less important as the population shifts demographically.
