Life Insurance in the (Mis)Information Age
Even as rapid shifts in the digital landscape transform our industry, there is still a need for human insight, creativity and interaction to help more Americans get the life insurance coverage they need. This stands out in “Life Insurance in the (Mis)Information Age,” the second report from the 2025 Insurance Barometer Study, by Life Happens and LIMRA.
The study shows that social media has become a dominant source for financial and insurance education and information, especially for younger generations, while artificial intelligence (AI) is emerging as a key tool for research and shopping. Despite these changes, trust in financial professionals remains high, with most consumers still wanting human guidance at key stages of the life insurance purchase journey.
Here are some findings that highlight both the opportunities and challenges for our industry:
Use of Social Media for Financial Information
Social media has grown into a primary source of financial information, particularly among younger adults. With more than six in 10 Americans using social media when looking for financial and insurance information, companies must find ways to stand out in a crowded space where unregulated influencers often compete with licensed professionals.
- 62% of Americans use social media for financial/insurance information, up from 29% in 2019
- Social media usage is strongest among younger adults: 84% of Gen Z; 78% of Millennials
- Top platforms: YouTube, Facebook, Instagram (order varies by demographic)
- Gen Z trusts “experts/influencers/spokespeople” on social media about as much as family/friends
84%
of Gen Z use social media when seeking information on financial and insurance products and services.
Roll of Financial Professionals
Trust in financial professionals remains a cornerstone of consumer confidence, even as digital tools proliferate. Most Americans say they value professional guidance, but barriers, such as perceived cost and a do-it-yourself mindset, keep some from seeking help from a professional.
- 78% of adults say they trust financial professionals
- 43% currently work with one; 94% of those say they are “somewhat” or “very” likely to trust them
- Reasons given for not working with a professional: cost (40%), preference to “do it myself” (40%), and “don’t make enough money to need one” (29%)
- Desired traits: experience (81%), specialized focus (62%), recommendations from friends/family (54%), empathy/kindness (43%)
94%
of those who work with a financial professional say they trust them.
AI and the Digital Shift
AI tools are now part of the consumer decision-making landscape, with many using them to research or shop for insurance. While some buyers are comfortable completing a life insurance purchase online, most still seek human input at pivotal points.
- 1 in 4 consumers would complete a life insurance purchase entirely online
- Of those who still want human help, they would turn to a professional …
- 18% – very early on in the process
- 24% – early on (not sure of what kind of life insurance is best)
- 36% – after narrowing product type but before deciding amount/price
- 18% – after deciding on type and how much
- 5% – at the very end to wrap up any lingering questions
- Over half of respondents reported using AI tools for research (51%) and shopping (55%) but the industry cannot control the accuracy of AI outputs
3 in 4
people say they still want professional help in the life insurance buying process.
Opportunities Await
The convergence of social media, AI and professional guidance creates a moment of risk and possibility. Companies and financial professionals can succeed by producing transparent, relatable digital content; educating about cost but reinforcing value over price; and ensuring compliance does not keep them from competing effectively in the spaces where consumers are already active.
Discover more
For more information on this study and its methodology, view our press release.