The amount of new life insurance premiums being paid grew for six consecutive quarters, according to a second-quarter 2022 report from LIMRA, a financial services research organization. At the same time, overall policy sales have dropped 9% so far in 2022. While these numbers may seem contradictory, they can indicate the life insurance shoppers are buying fewer but bigger policies.

“The life insurance coverage gap remains a high concern for our industry and society,” says John Carroll, senior vice president and head of insurance member relations & sales at LIMRA and LOMA. “More than 100 million Americans know they’re uninsured or underinsured and leaving their families at financial risk should they die unexpectedly.”

The gap in need vs. coverage reached an all-time high of 18 points, according to the 2022 Life Insurance Barometer Study conducted by LIMRA and Life Happens, both industry-funded organizations. That gap measures the difference between the coverage people say they have and what they actually need.

“Inflation or a recession can impact the share of the wallet consumers allocate for things like life insurance,” says Rebecca Rosser, vice president, life solutions at CUNA Mutual Group.

Rosser observes that against the backdrop of higher inflation, “we may see more people put off the decision to obtain coverage or purchase policies at lower amounts to accommodate what they can afford,” she says.

If you have life insurance through work or an individual life insurance policy, review your coverage regularly to make sure you’re not underinsured. Life changes—such as getting married, buying a house or having a baby—may mean you need more coverage.

One way to determine how much life insurance you need is by using a life insurance calculator.