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Market Overview
- Market Size: The U.S. life insurance market is projected to reach a gross written premium of $1.34 trillion in 2025, maintaining a steady growth trajectory with an annual increase of approximately 3.92% .Statista
- Policyholder Demographics:
- Millennials (aged 25–40): Now comprise 30% of life insurance policyholders, with a 7% increase in policies sold to this age group in 2023 .
- Seniors (aged 60 and above): Account for 60% of all life insurance claims, highlighting the importance of long-term care and end-of-life policies .CoinLaw
🔄 Product Trends
- Term Life Insurance: Continues to be a core product, with steady premium growth expected between 1% and 5% in 2025 .Limra
- Whole Life Insurance: Sales have experienced fluctuations due to interest rate impacts but are anticipated to grow modestly in 2025.
- Indexed Universal Life (IUL): Projected premium growth of 2% to 6% in 2025, driven by simplified products and lower face amounts .Limra
- Variable Universal Life (VUL): Expected to see a moderate growth of 5% to 9% in 2025, influenced by stock market performance and consumer interest in equity-linked products .Limra
💡 Consumer Preferences
- Living Benefits: Policies increasingly offer living benefits, allowing policyholders to access a portion of their coverage if diagnosed with a serious illness, addressing the demand for support during life, not just after death .imzansi.com
- Customization: There is a growing trend towards customizable riders, enabling individuals to tailor policies to suit different life stages, such as single, married, or starting a family .imzansi.com
- Digital Engagement: Younger demographics are driving life insurance application growth, with social media playing a key role in educating and influencing these consumers about life insurance products .