A 50-State Citizens Life Group Analysis
What Seniors Leave on the Table by Letting Life Insurance Lapse
American seniors leave an estimated $20 billion in life insurance value on the table every year by letting policies lapse or surrendering them for a fraction of their market value, according to a 2026 Citizens Life Group analysis of ACLI life-insurance-in-force data, U.S. Census 65+ population figures, and 2025 LISA market data.
$20 billion
estimated left on the table each year
$327
per senior age 65+, on average
~9x
a settlement vs. surrender (LISA 2025)
Key findings
- •American seniors leave an estimated $20 billion in life insurance value on the table every year, roughly $327 per resident age 65 and older.
- •South Dakota seniors leave the most per person, about $646 each; West Virginia seniors leave the least, about $168.
- •In total dollars, California tops the list at an estimated $2.23 billion a year, reflecting its large 65+ population and life insurance in force.
- •In 2025, policyholders who sold their life insurance received an average of $212,066 versus an average cash surrender value of $24,360, nearly nine times more (LISA 2025).
- •About 88% of universal life policies never pay a death benefit (Society of Actuaries and LIMRA, reported in Gottlieb & Smetters, American Economic Review 2021), and roughly 85% of term policies expire without a claim (industry estimates; Milliman, 2004).
Every per-state dollar figure on this page is a transparent estimate from a published model, not a reported government figure. See how we calculated these estimates.
Analysis by Cole Hallman, Managing Partner of Citizens Life Group. Reviewed by Jeff Hallman, Florida licensed life agent (line 0215) and appointed viatical settlement broker (line 0266).
Published 2026-06-19 · Last updated 2026-06-19
How much life insurance do American seniors let lapse every year?
Americans age 65 and older let more than $100 billion in life insurance face value lapse every year, according to the Life Insurance Settlement Association (LISA). Most of that coverage simply disappears: the policy lapses for nothing, or it is surrendered for a cash value that is a small fraction of what the policy could fetch on the open market.
Applying a typical life-settlement payout of about 20% of face value (commonly cited as 20% to 30%), we estimate that seniors leave roughly $20 billion of realizable value on the table each year. Depending on the payout share assumed (18% to 25% of face), the national estimate ranges from about $18 billion to $25 billion. Broader industry calculations put the theoretical value left on the table as high as $37.5 billion a year, though those rest on more debatable assumptions than the model used here.
This figure is an estimate built entirely from public sources. The map and table below break it down for all 50 states and the District of Columbia.
Value left on the table per senior, by state
Estimated life insurance value left on the table each year per resident age 65 and older. Hover or tap a state for the figure; the full data is in the table below.
Which states leave the most life insurance value on the table?
All 50 states and DC, ranked. Click a column heading to re-sort. Every figure is a labeled estimate; see the methodology.
| # | State | Est. value left / yr | Per senior 65+ |
|---|---|---|---|
| 1 | California | $2.23 billion | $342 |
| 2 | Florida | $1.58 billion | $310 |
| 3 | New York | $1.57 billion | $419 |
| 4 | Texas | $1.26 billion | $288 |
| 5 | New Jersey | $850 million | $498 |
| 6 | Pennsylvania | $841 million | $316 |
| 7 | Illinois | $836 million | $368 |
| 8 | North Carolina | $622 million | $315 |
| 9 | Ohio | $606 million | $267 |
| 10 | Georgia | $584 million | $332 |
| 11 | Massachusetts | $564 million | $422 |
| 12 | Michigan | $520 million | $262 |
| 13 | Virginia | $504 million | $325 |
| 14 | Minnesota | $438 million | $415 |
| 15 | Tennessee | $406 million | $318 |
| 16 | Wisconsin | $392 million | $335 |
| 17 | Maryland | $386 million | $350 |
| 18 | Washington | $378 million | $274 |
| 19 | Arizona | $377 million | $253 |
| 20 | Colorado | $368 million | $377 |
| 21 | Connecticut | $351 million | $492 |
| 22 | Missouri | $347 million | $297 |
| 23 | Indiana | $315 million | $260 |
| 24 | South Carolina | $310 million | $287 |
| 25 | Alabama | $279 million | $292 |
| 26 | Louisiana | $262 million | $322 |
| 27 | Iowa | $249 million | $407 |
| 28 | Oregon | $198 million | $233 |
| 29 | Kentucky | $182 million | $220 |
| 30 | Kansas | $177 million | $336 |
| 31 | Nevada | $157 million | $272 |
| 32 | Utah | $154 million | $356 |
| 33 | Oklahoma | $154 million | $223 |
| 34 | Nebraska | $148 million | $424 |
| 35 | Mississippi | $147 million | $278 |
| 36 | Arkansas | $133 million | $237 |
| 37 | Delaware | $130 million | $566 |
| 38 | Hawaii | $119 million | $384 |
| 39 | South Dakota | $112 million | $646 |
| 40 | New Hampshire | $101 million | $334 |
| 41 | Idaho | $100 million | $283 |
| 42 | New Mexico | $74 million | $172 |
| 43 | Maine | $74 million | $223 |
| 44 | Montana | $68 million | $286 |
| 45 | Rhode Island | $68 million | $309 |
| 46 | West Virginia | $65 million | $168 |
| 47 | North Dakota | $57 million | $416 |
| 48 | Wyoming | $41 million | $356 |
| 49 | Vermont | $40 million | $271 |
| 50 | District of Columbia | $38 million | $414 |
| 51 | Alaska | $38 million | $345 |
Source: Citizens Life Group analysis of ACLI 2025 Life Insurers Fact Book (Table 10.3, 2024 data), U.S. Census Vintage 2024, and LISA 2025 market data. Download the full dataset (CSV).
How much does the average senior in each state lose?
Total dollars track population, so big states naturally top that list. The more revealing measure is value left on the table per senior, which reflects how much life insurance the typical older resident actually holds. On that basis the ranking scrambles: smaller states with larger average policies can rank near the top, while populous states can sit in the middle.
Most left on the table per senior
- 1. South Dakota$646
- 2. Delaware$566
- 3. New Jersey$498
- 4. Connecticut$492
- 5. Nebraska$424
- 6. Massachusetts$422
- 7. New York$419
- 8. North Dakota$416
- 9. Minnesota$415
- 10. District of Columbia$414
Least left on the table per senior
- 51. West Virginia$168
- 50. New Mexico$172
- 49. Kentucky$220
- 48. Oklahoma$223
- 47. Maine$223
- 46. Oregon$233
- 45. Arkansas$237
- 44. Arizona$253
- 43. Indiana$260
- 42. Michigan$262
Cite or republish this study
This data is free to use and republish with attribution (CC BY 4.0). Journalists and researchers are welcome to cite the figures and embed the map. Questions or custom state data: contact@citizenslifegroup.com.
Why do so many life insurance policies lapse without paying out?
Most life insurance never results in a death benefit. Industry research finds that about 88% of universal life policies never pay out (Society of Actuaries and LIMRA, reported in Gottlieb & Smetters, American Economic Review 2021), and roughly 85% of term policies lapse or expire before they ever pay a claim (industry estimates; Milliman, 2004).
The reasons are familiar to anyone on a fixed income. Premiums on older permanent policies can rise sharply as the insured ages. Coverage bought decades ago for a mortgage or young children may no longer be needed. And critically, most seniors do not know that an unwanted policy can be sold. A life settlement lets a qualifying policyholder sell the policy to an institutional buyer for more than its cash surrender value. In 2025 the average seller received $212,066, against an average surrender value of $24,360, nearly nine times more (LISA 2025; part of that record gap reflects a 27% year-over-year drop in the average cash surrender value).
When a policy lapses, that entire difference disappears. That is the value this study estimates, state by state.
How we calculated these estimates
These are transparent estimates, not reported figures. We built them entirely from named, public sources so anyone can reproduce or challenge them.
The formula
value left on the table (state) = (national senior lapsed face × state weight) × payout share
state weight = (individual life in force × share of residents 65+) ÷ the same quantity summed across all 51 jurisdictions
| Input | Value | Source |
|---|---|---|
| National senior lapsed face | $100 billion / year (age 65+) | LISA |
| Individual life insurance in force, by state | $23.17 trillion total | ACLI 2025 Fact Book, Table 10.3 (2024 data) |
| Population age 65+, by state | 61,179,918 national | U.S. Census, Vintage 2024 |
| Life-settlement payout share | ~20% of face value (range 20%-30%) | Industry estimates; CLG broker net-to-seller 20.01% (H1 2024) |
Cross-check
The 51 jurisdiction estimates sum to about $20 billion a year, which reconciles with LISA's independent finding that seniors let more than $100 billion in face value lapse annually (at the ~20% a settlement typically pays). We publish that total as a check you can verify, not as an assumption. LISA market figures reflect data self-reported by its member companies.
Assumptions and limitations
- •No per-state lapse rate exists. Lapse and surrender rates are published only nationally (NAIC, SOA-LIMRA), never by state. Our model therefore allocates a national pool by each state's in-force and senior population, not by state lapse behavior. The ranking should not be read as some states' seniors individually lapsing more often.
- •Per-state figures are estimates. They are modeled, not reported. We round them and present a sensitivity range ($18 billion to $25 billion nationally) rather than implying false precision.
- •Individual policies only. We use individual life insurance in force, since group and credit life policies generally cannot be sold.
- •Vintages. ACLI data is for 2024; Census population is as of July 1, 2024; LISA market data is for 2025. The page is dated and updated annually.
Sources
State by state: estimated value left on the table
An estimate for every state and the District of Columbia. Figures are modeled estimates from the sources above.
South Dakota
South Dakota seniors leave an estimated $112 million on the table every year by lapsing or surrendering life insurance they could have sold, about $646 for every resident age 65 and older.
Delaware
Delaware seniors leave an estimated $130 million on the table every year by lapsing or surrendering life insurance they could have sold, about $566 for every resident age 65 and older.
New Jersey
New Jersey seniors leave an estimated $850 million on the table every year by lapsing or surrendering life insurance they could have sold, about $498 for every resident age 65 and older.
Connecticut
Connecticut seniors leave an estimated $351 million on the table every year by lapsing or surrendering life insurance they could have sold, about $492 for every resident age 65 and older.
Nebraska
Nebraska seniors leave an estimated $148 million on the table every year by lapsing or surrendering life insurance they could have sold, about $424 for every resident age 65 and older.
Massachusetts
Massachusetts seniors leave an estimated $564 million on the table every year by lapsing or surrendering life insurance they could have sold, about $422 for every resident age 65 and older.
New York
New York seniors leave an estimated $1.57 billion on the table every year by lapsing or surrendering life insurance they could have sold, about $419 for every resident age 65 and older.
North Dakota
North Dakota seniors leave an estimated $57 million on the table every year by lapsing or surrendering life insurance they could have sold, about $416 for every resident age 65 and older.
Minnesota
Minnesota seniors leave an estimated $438 million on the table every year by lapsing or surrendering life insurance they could have sold, about $415 for every resident age 65 and older.
District of Columbia
District of Columbia seniors leave an estimated $38 million on the table every year by lapsing or surrendering life insurance they could have sold, about $414 for every resident age 65 and older.
Iowa
Iowa seniors leave an estimated $249 million on the table every year by lapsing or surrendering life insurance they could have sold, about $407 for every resident age 65 and older.
Hawaii
Hawaii seniors leave an estimated $119 million on the table every year by lapsing or surrendering life insurance they could have sold, about $384 for every resident age 65 and older.
Colorado
Colorado seniors leave an estimated $368 million on the table every year by lapsing or surrendering life insurance they could have sold, about $377 for every resident age 65 and older.
Illinois
Illinois seniors leave an estimated $836 million on the table every year by lapsing or surrendering life insurance they could have sold, about $368 for every resident age 65 and older.
Utah
Utah seniors leave an estimated $154 million on the table every year by lapsing or surrendering life insurance they could have sold, about $356 for every resident age 65 and older.
Wyoming
Wyoming seniors leave an estimated $41 million on the table every year by lapsing or surrendering life insurance they could have sold, about $356 for every resident age 65 and older.
Maryland
Maryland seniors leave an estimated $386 million on the table every year by lapsing or surrendering life insurance they could have sold, about $350 for every resident age 65 and older.
Alaska
Alaska seniors leave an estimated $38 million on the table every year by lapsing or surrendering life insurance they could have sold, about $345 for every resident age 65 and older.
California
California seniors leave an estimated $2.23 billion on the table every year by lapsing or surrendering life insurance they could have sold, about $342 for every resident age 65 and older.
Kansas
Kansas seniors leave an estimated $177 million on the table every year by lapsing or surrendering life insurance they could have sold, about $336 for every resident age 65 and older.
Wisconsin
Wisconsin seniors leave an estimated $392 million on the table every year by lapsing or surrendering life insurance they could have sold, about $335 for every resident age 65 and older.
New Hampshire
New Hampshire seniors leave an estimated $101 million on the table every year by lapsing or surrendering life insurance they could have sold, about $334 for every resident age 65 and older.
Georgia
Georgia seniors leave an estimated $584 million on the table every year by lapsing or surrendering life insurance they could have sold, about $332 for every resident age 65 and older.
Virginia
Virginia seniors leave an estimated $504 million on the table every year by lapsing or surrendering life insurance they could have sold, about $325 for every resident age 65 and older.
Louisiana
Louisiana seniors leave an estimated $262 million on the table every year by lapsing or surrendering life insurance they could have sold, about $322 for every resident age 65 and older.
Tennessee
Tennessee seniors leave an estimated $406 million on the table every year by lapsing or surrendering life insurance they could have sold, about $318 for every resident age 65 and older.
Pennsylvania
Pennsylvania seniors leave an estimated $841 million on the table every year by lapsing or surrendering life insurance they could have sold, about $316 for every resident age 65 and older.
North Carolina
North Carolina seniors leave an estimated $622 million on the table every year by lapsing or surrendering life insurance they could have sold, about $315 for every resident age 65 and older.
Florida
Florida seniors leave an estimated $1.58 billion on the table every year by lapsing or surrendering life insurance they could have sold, about $310 for every resident age 65 and older.
Rhode Island
Rhode Island seniors leave an estimated $68 million on the table every year by lapsing or surrendering life insurance they could have sold, about $309 for every resident age 65 and older.
Missouri
Missouri seniors leave an estimated $347 million on the table every year by lapsing or surrendering life insurance they could have sold, about $297 for every resident age 65 and older.
Alabama
Alabama seniors leave an estimated $279 million on the table every year by lapsing or surrendering life insurance they could have sold, about $292 for every resident age 65 and older.
Texas
Texas seniors leave an estimated $1.26 billion on the table every year by lapsing or surrendering life insurance they could have sold, about $288 for every resident age 65 and older.
South Carolina
South Carolina seniors leave an estimated $310 million on the table every year by lapsing or surrendering life insurance they could have sold, about $287 for every resident age 65 and older.
Montana
Montana seniors leave an estimated $68 million on the table every year by lapsing or surrendering life insurance they could have sold, about $286 for every resident age 65 and older.
Idaho
Idaho seniors leave an estimated $100 million on the table every year by lapsing or surrendering life insurance they could have sold, about $283 for every resident age 65 and older.
Mississippi
Mississippi seniors leave an estimated $147 million on the table every year by lapsing or surrendering life insurance they could have sold, about $278 for every resident age 65 and older.
Washington
Washington seniors leave an estimated $378 million on the table every year by lapsing or surrendering life insurance they could have sold, about $274 for every resident age 65 and older.
Nevada
Nevada seniors leave an estimated $157 million on the table every year by lapsing or surrendering life insurance they could have sold, about $272 for every resident age 65 and older.
Vermont
Vermont seniors leave an estimated $40 million on the table every year by lapsing or surrendering life insurance they could have sold, about $271 for every resident age 65 and older.
Ohio
Ohio seniors leave an estimated $606 million on the table every year by lapsing or surrendering life insurance they could have sold, about $267 for every resident age 65 and older.
Michigan
Michigan seniors leave an estimated $520 million on the table every year by lapsing or surrendering life insurance they could have sold, about $262 for every resident age 65 and older.
Indiana
Indiana seniors leave an estimated $315 million on the table every year by lapsing or surrendering life insurance they could have sold, about $260 for every resident age 65 and older.
Arizona
Arizona seniors leave an estimated $377 million on the table every year by lapsing or surrendering life insurance they could have sold, about $253 for every resident age 65 and older.
Arkansas
Arkansas seniors leave an estimated $133 million on the table every year by lapsing or surrendering life insurance they could have sold, about $237 for every resident age 65 and older.
Oregon
Oregon seniors leave an estimated $198 million on the table every year by lapsing or surrendering life insurance they could have sold, about $233 for every resident age 65 and older.
Maine
Maine seniors leave an estimated $74 million on the table every year by lapsing or surrendering life insurance they could have sold, about $223 for every resident age 65 and older.
Oklahoma
Oklahoma seniors leave an estimated $154 million on the table every year by lapsing or surrendering life insurance they could have sold, about $223 for every resident age 65 and older.
Kentucky
Kentucky seniors leave an estimated $182 million on the table every year by lapsing or surrendering life insurance they could have sold, about $220 for every resident age 65 and older.
New Mexico
New Mexico seniors leave an estimated $74 million on the table every year by lapsing or surrendering life insurance they could have sold, about $172 for every resident age 65 and older.
West Virginia
West Virginia seniors leave an estimated $65 million on the table every year by lapsing or surrendering life insurance they could have sold, about $168 for every resident age 65 and older.
How can seniors avoid leaving money on the table?
Before you lapse or surrender a policy, find out what it could be worth. A licensed life settlement broker represents you, the seller, and shops your policy to multiple institutional buyers to maximize your payout.
Frequently asked questions about lapsed life insurance value
How much life insurance do American seniors let lapse every year?
Americans age 65 and older let more than $100 billion in life insurance face value lapse every year (LISA). Because a competitively brokered life settlement pays a senior roughly 20 percent of face value on average (commonly cited as 20 to 30 percent), we estimate that translates to about $20 billion in realizable value left on the table annually, with a plausible range of $18 billion to $25 billion depending on the assumed payout share.
Which state leaves the most life insurance value on the table per senior?
By our estimate, South Dakota ranks highest at about $646 of life insurance value left on the table per resident age 65 and older each year, while West Virginia ranks lowest at about $168. The national average is about $327 per senior. These are transparent model estimates, not reported figures.
What does "value left on the table" mean?
It is the difference between what a senior could have received by selling an unwanted life insurance policy in a competitively brokered life settlement and what they actually got by letting it lapse (nothing) or surrendering it for its cash value (a small fraction of the policy's market value). In 2025, sellers received an average of $212,066 versus an average cash surrender value of $24,360, nearly nine times more (LISA).
How did Citizens Life Group calculate these estimates?
We start with LISA's finding that Americans 65 and older let more than $100 billion in life insurance face value lapse each year. We allocate that national pool across the states using each state's share of individual life insurance in force (ACLI 2025 Life Insurers Fact Book) weighted by its share of residents age 65 and older (U.S. Census Vintage 2024), then apply a typical life-settlement payout of about 20 percent of face value (commonly cited as 20 to 30 percent). Every per-state figure is a labeled estimate. The full formula and sources are in the methodology section.
Why do so many life insurance policies lapse without ever paying out?
Industry research finds that about 88 percent of universal life policies never pay a death benefit (Society of Actuaries and LIMRA data, reported in Gottlieb and Smetters, American Economic Review 2021), and roughly 85 percent of term policies expire without paying a claim (industry estimates; Milliman, 2004). Premiums on older permanent policies often rise sharply, and many seniors do not know that an unwanted policy can be sold for more than its cash surrender value.
What should a senior do if they have a policy they no longer need?
Before lapsing or surrendering, find out what the policy could be worth on the secondary market. A licensed life settlement broker represents the seller and shops the policy to multiple institutional buyers. You can estimate a policy's value with a free calculator or speak with a licensed broker. Citizens Life Group can be reached at (321) 270-0279.
About this analysis
Compiled by Cole Hallman, Managing Partner of Citizens Life Group, a licensed life settlement brokerage. Reviewed by Jeff Hallman, a Florida licensed life agent (line 0215) with an appointed viatical settlement broker authority (line 0266) that covers life settlements. You can verify our licensing by name with the Florida Department of Financial Services.
Disclosure: Citizens Life Group is a licensed life settlement brokerage that represents policy sellers. This page is an original analysis compiled from three public datasets (ACLI life insurance in force, U.S. Census 65+ population, and LISA 2025 market data) and is provided as a free educational resource. The per-state dollar amounts are transparent model estimates, not reported figures, and are not a promise of any specific policy value. See our privacy policy and terms of use.