As Iowa families navigate higher household costs, economic uncertainty, and the challenge of preparing for a retirement that could last decades, life insurance and annuities continue to play an important role in protecting families and strengthening their financial futures.
Life insurance companies pay Iowa families an average of $14.5 million every day—approximately $5.3 billion annually—providing financial protection when families need it most. Annuities provide another important source of financial security by helping individuals turn retirement savings into reliable income that can last throughout retirement.
Together, these products address two fundamental financial concerns: protecting the people who depend on your income today and creating greater certainty that your income can last tomorrow.
“The financial pressures facing families reinforce the importance of planning for what we can’t always predict,” said Tyler Brown, Life & Financial Services Chair of the Federation of Iowa Insurers. “Life insurance can help protect a family financially when a loved one dies, while annuities can help provide dependable income throughout retirement. Both can provide something increasingly valuable in an uncertain economy—greater financial security and peace of mind.”
According to the Federation of Iowa Insurers, 1.7 million individual life insurance policies were in effect in Iowa in 2024, providing an average of approximately $167,000 per policy in death benefit protection.
Protecting Iowa Households
Life insurance can help families maintain their financial footing following the death of a loved one. Benefits can replace lost income, help pay mortgages and other debts, cover final expenses, and provide resources for future needs such as education.
Permanent life insurance policies may also accumulate cash value that policyholders can access under certain circumstances during their lifetimes.
Annuities address a different but equally important financial challenge: ensuring retirement savings can provide income for as long as it is needed. Depending on the type of annuity selected, these products can provide:
● Lifetime income: Certain annuities can provide guaranteed income payments for life, helping address the risk of outliving retirement savings.
● Protection from market volatility: Some annuity products offer protection from market losses while providing opportunities for growth.
● Tax-deferred growth: Earnings generally accumulate tax-deferred until funds are withdrawn, allowing retirement assets to grow without annual taxation of gains.
Research cited by the Federation also indicates that many annuity owners say having guaranteed income helps reduce concerns about running out of money in retirement.
A $20.6 Billion Economic Impact in Iowa
The importance of the life insurance industry extends beyond the financial protection it provides individual households. Life insurers are also significant employers, investors, and contributors to Iowa communities.
According to an economic impact study commissioned by the Federation of Iowa Insurers, the industry generated $20.6 billion in total economic impact in Iowa in 2024, the most recently available data. There are 413 life insurers licensed to do business in Iowa, including 33 companies domiciled in the state. In Iowa, the life insurance industry:
● Supports more than 56,000 jobs, representing approximately $7.5 billion in wages and salaries
● Invests approximately $72 billion in Iowa’s economy
● Contributes approximately $29 million annually to charitable organizations and communities
Nationally, life insurers protect approximately 90 million American families, support 2.8 million jobs and invest approximately $8.4 trillion in the U.S. economy.
“These numbers demonstrate that life insurers have an impact far beyond the policies and contracts they issue,” Brown said. “They provide long-term capital that supports economic growth while helping millions of families protect what they have built and prepare for what comes next.”
The Federation of Iowa Insurers represents and advocates for insurance companies doing business in Iowa and works to promote a competitive environment that enables insurers to continue serving consumers, investing in communities and contributing to the state’s economy.
About the Federation of Iowa Insurers
The Federation of Iowa Insurers represents insurance companies doing business in Iowa and advocates for public policies that support a strong, competitive insurance marketplace. Its members provide financial protection and retirement solutions to Iowa families while supporting jobs, investment, and economic growth throughout the state.
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Contact
Lee Henderson
515-288-0375
[email protected]
https://federationofiowainsurers.com/
Facebook: https://www.facebook.com/FederationofIowaInsurers/
LinkedIn: https://www.linkedin.com/company/federation-of-iowa-insurers
Disclaimer: This press release is provided for informational purposes only. Economic impact estimates, legislative summaries, and policy discussions are based on the sources identified in this release and reflect the views of the Federation of Iowa Insurers. Nothing in this release should be construed as legal, tax, investment, or financial advice.
Source: 38 Digital Market News
Release ID: 2663247
