17 New Term Life Insurance Statistics and Trends

Here is a list of several new types rends and statistics occurring on the term life insurance industry over the past 12 months:

Growth of Term Life Insurance Market

One of the standout statistics from recent reports is the growth of the term life insurance market. 

According to the American Council of Life Insurers (ACLI), the term life insurance market saw a 5.6% increase in new policies issued in 2022. 

This rise signifies a growing awareness and need for temporary yet robust financial protection among consumers.

Demographics of Term Life Insurance

When it comes to demographics, Millennials are leading the charge. 

The Life Insurance Marketing and Research Association (LIMRA) reports that 40% of new term life insurance policyholders are between the ages of 25 to 35. 

This generation is increasingly recognizing the importance of life insurance in securing their young families' futures.

Gender Dynamics – Female Market Growth

Gender dynamics in term life insurance reveal some interesting trends. 

Approximately 57% of term life insurance policies are purchased by men, but the percentage of women buying these policies is steadily rising. 

This shift highlights an increasing financial awareness and independence among women.

Average Coverage Amount for Term Life Insurance

The average coverage amount for term life policies has also seen an uptick. 

LIMRA notes that the average coverage amount increased by 3.2% in the last year, bringing the figure to an estimated $250,000. 

People are looking for substantial coverage to meet future needs like mortgages, income replacement, and final expenses.

Online Buying on The Rise

Another fascinating insight is the rise of online purchases. 

A survey by the Insurance Information Institute (III) indicated that 30% of new term life insurance policies were bought online in 2022, reflecting a shift towards digital convenience and accessibility.

Popularity of Level Term Life Insurance

When comparing different types of term life insurance policies, level term life insurance remains the most popular. 

This type of policy maintains the same death benefit and premium throughout the term's duration, offering predictability and ease of budgeting.

Claims Payout of Term Life Insurance Policies

Policy performance in terms of claims payout is a crucial factor in evaluating life insurance providers. 

According to the National Association of Insurance Commissioners (NAIC), 97% of term life claims were paid out in a timely manner in 2022, reinforcing the reliability of this insurance type.

Cost of Term Life Insurance

The cost of premiums is always a hot topic. 

Over the last year, the average term life insurance premium for a healthy 30-year-old male with a 20-year, $500,000 policy was around $27 a month. 

For women, it was slightly lower at $23 per month, reflecting lower risk factors typically associated with women. 

Here's how you can review a complete list of 17 new term life insurance statistics and trends in the life insurance industry for 2024.