Here is a list of several life insurance statistics and industry trends taking place in the life insurance industry over the past 12 months:
Reasons to Purchase Life Insurance
In 2023, the most common reason cited for purchasing life insurance was Income replacement (61%), followed by covering mortgage debt (48%), and final expenses (33%).
Growth in Female Policyholders
Women have increasingly purchased life insurance, with a 15% growth in new policies by female policyholders, highlighting a shift towards gender parity in coverage.
Growth in Millennial Buyers
Millennials show an increasing interest in life insurance, with a 38% rise in policy acquisitions among individuals aged 25-40 in 2023, reports LIMRA.
Life Insurance Coverage Amounts
In terms of coverage amounts, the majority of new policies (57%) fall within the $100,000 to $250,000 range, reflecting consumer concerns about adequacy of coverage.
Online Purchases of Life Insurance Increase
Digital transformation is sweeping through the industry. The Insurance Information Institute reports that 47% of all life insurance policies were purchased online in 2023.
Life Insurance Industry Forecast
As we look towards 2024, industry forecasts by the Insurance Information Institute predict continued market growth, with a projected 5% increase in total premiums.
Life Insurance Policy Renewal Rates
A crucial metric to watch is the policy renewal rate, which stands strong at 74%, indicating high consumer satisfaction and trust in their life insurance providers.
Life Insurance Industry Performance
The industry's performance metrics are robust. The low claim denial rate of 2% is a testament to the insurers’ commitment to fulfilling policyholder expectations.
Life Insurance Cost Trends
Challenges remain, particularly regarding cost trends. Policy pricing has seen an average increase of 3% in 2023, driven by rising life expectancy and changing mortality assumptions.
Term Life Insurance Growth
This increase has prompted many to look into term life insurance as a more economical option, and indeed 2023 saw a 15% jump in term life policy purchases.
Here's how you can review the complete list of 33 new life insurance statistics and industry trends for life insurance in 2024.
