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.

Top 10 Highest Life Insurance Payouts Per Capita

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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 come from U.S. Census Bureau Estimates via the 1-Year American Community Survey for 2023.