United States Life Insurance Market, By Type of Insurance Provider (Public Vs Private), By Premium Type (Regular Vs Single), By Type of Coverage (Individual, Group), By Term of Coverage (Term Vs Whole), By Mode of Purchase (Insurance Agents/Brokers, Insurance Companies, Others (Insurtech Companies, Third Party, etc.)), By End User (Minors, Adults, Senior Citizens), By Region, By Company, Forecast & Opportunities, 2018-2028
Published Date: February - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationUnited States Life Insurance Market, By Type of Insurance Provider (Public Vs Private), By Premium Type (Regular Vs Single), By Type of Coverage (Individual, Group), By Term of Coverage (Term Vs Whole), By Mode of Purchase (Insurance Agents/Brokers, Insurance Companies, Others (Insurtech Companies, Third Party, etc.)), By End User (Minors, Adults, Senior Citizens), By Region, By Company, Forecast & Opportunities, 2018-2028
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The US life insurance market was valued at $ 765.38 billion in 2023 and is projected to reach $ 1,476.31 billion by 2032, growing at a CAGR of 7.1% from 2024 to 2032.
The United States Life Insurance Market is witnessing robust growth during the forecasted period, owing to the declining life expectancy in the country, increasing government initiatives. Moreover, the increasing awareness among consumers about the benefits of life insurance, is significantly fueling the demand for life insurance in the country.
In exchange for the premiums paid by the policyholder, the insurer agrees to pay the beneficiary a certain amount of money when the insured person passes away or after a specified length of time. This agreement is known as life insurance. The owner of a life insurance policy must pay premiums for the duration of the procedure, and in return, the life insurance company offers a complete life cover. If a tragic event occurs, life insurance pays a lump sum payment known as the death benefit.
As per the article published by Forbes, at least three in four Americans have some life insurance. Moreover, according to the Life Insurance Marketing and Research Association, about 52% of Americans own life insurance.
In recent years, the life insurance market has placed an increasing amount of emphasis on the client experience. Insurance providers are recognizing how crucial it is to create a satisfying customer experience in order to draw in new clients, keep existing ones, and forge enduring bonds with them. Several businesses are investing in better digital platforms and online tools to enhance the customer experience, making it simpler for clients to buy and manage policies online. Also, some businesses are offering more customized goods and services that address the special requirements and taste of each client. For instance, some insurers now provide packages that combine life insurance with other forms of insurance or financial goods, or they provide more flexible policy alternatives.
The consumer experience also includes enhancing customer service. To give clients prompt and beneficial solutions to their inquiries and problems, several insurers are investing in more comprehensive customer service channels, such as online chat, email, and phone assistance.
Furthermore, some businesses are emphasizing on education to better assist customers in understanding their plans and making knowledgeable coverage options. In order to help clients better understand their coverage alternatives, this can involve delivering educational materials and tools or providing simple to comprehend policy paperwork.
A growing focus on wellness and preventive treatment is also seen in the US life insurance industry. The need to encourage policyholders to lead healthy lifestyles and take precautions against illness and disease is being recognized by life insurance firms. Furthermore, a lot of life insurance providers provide wellness initiatives and rewards to policyholders who take actions to enhance their health. For instance, certain policies may provide discounts or incentives for policyholders who engage in fitness activities, give up smoking, or get routine health examinations. Furthermore, certain life insurance providers might give policyholders access to telemedicine services, which can offer easy and inexpensive access to medical care and guidance. By promoting wellness and preventive care, life insurance companies are not only helping policyholders stay healthy, but they are also reducing their own risk. Healthier policyholders are less likely to file claims, which can help keep insurance premiums more affordable for everyone.
Declining Life Expectancy is Fueling the Market Growth
As per the article published by Council on Foreign Relations, the opioid epidemic and subsequent COVID-19 pandemic have contributed significantly to the record drop in life expectancy in the United States. According to information published by the US Centers for Disease Control and Prevention, the years 2020 and 2021 had the most significant decline in life expectancy in a century, with Americans born in 2021 experiencing a decline to 76.1 years (CDC).
The decline in life expectancy in the United States is primarily caused by COVID-19. According to the CDC, just over half of the reduction was caused by an increase in coronavirus-related mortality. More than a million Americans have died from COVID-19 since the epidemic began, making it the nation with the most significant documented death toll. In 2021, COVID-19 continued to be the third most important cause of death in the United States. However, the CDC discovered that death from factors such as heart disease and unintentional injuries was also more significant. Drug overdoses, which have increased as COVID-19 has aggravated the nation's opioid epidemic, are to account for the spike in unintended injuries.
Rising Government Initiatives Drive the Market Growth
As per the data provided by The Department of the Treasury and the Bureau of the Fiscal Service, The U.S. government has spent USD406.37 billion in the fiscal year 2023 to ensure the well-being of the people of the United States. Moreover, the government spent USD 914 billion on health services in the country in 2021. Thus, with the rise in government spending on people’s health, the population is getting informed about the necessity of purchasing life insurance.
Ease of Availability to Boost the Market Growth
Online purchases have increased significantly due to expanding internet usage, and increased smartphone use. Online portals like company websites and mobile applications, which increase consumer market awareness, are the factors driving the life insurance market growth in United States. Additionally, since these websites frequently offer various options from different providers, they provide users with the most straightforward way to browse and buy premium life insurance products. Thus, it is anticipated that life insurance providers' already-increasing presence on online platforms will continue. Hence, the increasing presence of life insurance providers on online media is expected to further boost the market growth.
Increasing demand for life insurance among millennials
There has been an increasing demand for life insurance among millennials in recent years. As this demographic reaches their peak earning years and starts families, many are realizing the importance of having adequate life insurance coverage to protect their loved ones in the event of an unexpected death. There has been an increasing demand for life insurance among millennials in recent years. As this demographic reaches their peak earning years and starts families, many are realizing the importance of having adequate life insurance coverage to protect their loved ones in the event of an unexpected death.
In response to this trend, insurance companies have created goods and services that are customized to meet the particular requirements and preferences of millennials. For instance, some businesses are providing digital platforms that make it simpler to buy and manage policies online, as well as more adaptable and personalized life insurance products. Overall, the trend of increasing demand for life insurance among millennials is expected to continue in the coming years.
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Market Segmentation
The United States Life Insurance market is segmented based on the type of insurance, premium type, type of coverage, term of coverage, mode of purchase, and by end user. Based on the type of insurance provider, the market is segmented into public vs. private. Based on premium type, the market is divided into regular and single. Based on the type of coverage, the market is fragmented into individuals and groups. Further, based on the term of coverage, the market is divided into terms, and whole. Based on the mode of purchase, the market is divided into insurance agents/brokers, insurance companies, and others, including insurtech companies, third party, etc. By end user, the market is fragmented into minors, adults, and senior citizens.
Market Players
Haven Life Insurance Agency LLC, Northwestern Mutual Investment Services, LLC, Guardian Life Insurance Co Of America, Transamerica Corp, MassMutual Holding LLC, Prudential Financial, Inc., Banner Life Insurance Co, Legal & General Investment Management America, Inc., Nationwide Mutual Insurance Co., John Hancock Life Insurance Co USA are some of the major players in the United States life insurance market.
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Attribute |
Details |
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Base Year |
2022 |
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Historic Data |
2018 – 2021 |
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Estimated Year |
2023 |
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Forecast Period |
2024 – 2028 |
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Quantitative Units |
Value in USD Million, CAGR for 2018-2022 and 2023-2028 |
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Report Coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
· Type of Insurance Provider · Premium Type · Type of Coverage · Term of Coverage · Mode of Purchase · End User · Region |
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Regional scope |
South, Midwest, West, Northeast |
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Key companies profiled |
Haven Life Insurance Agency LLC, Northwestern Mutual Investment Services, LLC, Guardian Life Insurance Co Of America, Transamerica Corp, MassMutual Holding LLC, Prudential Financial, Inc., Banner Life Insurance Co, Legal & General Investment Management America, Inc., Nationwide Mutual Insurance Co., John Hancock Life Insurance Co USA, etc. |
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Customization scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
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