Life insurers gain 7% growth despite post-pandemic slide: LIMRA

Life insurance policy growth rose by 7% in 2025, with new annualized premiums exceeding $17.5 billion, despite fewer consumers saying they're in the market to buy, according to research from LIMRA's 2026 Insurance Barometer Study. 

Just 38% of Americans say that they need, or need more, life insurance in 2026, according to the survey. Although this figure has cooled since its 2024 peak of 42%, LIMRA's data shows that it remains ahead of the pre-pandemic high of 36%, achieved in 2015. This reflects how technology has improved consumer awareness, customer experience and the overall buying process, according to LIMRA.

"Although the urgency associated with the pandemic has declined, the industry efforts to make the buying process easier and accessibility through technology has definitely had a positive impact," said Steve Wood, research director for LIMRA markets research, in the press release. "Today, an aging population and shifting distribution trends may prompt more insurers to integrate more wealth management, chronic illness and long-term care solutions into their life insurance products. Interestingly, new research shows these types of features are appealing to younger demographics as well."

The research also shows that life insurers are investing in new technologies to simplify the buying process and improve customer experience. These digital tools help streamline applications and underwriting processes to improve life advisors' workflows, freeing up time and enabling advisors to dedicate more time to educating consumers on their insurance needs.

Consumer expectations are changing, as well, as many are no longer viewing life insurance solely as a means to cover funeral costs. According to LIMRA's survey, many customers are seeking policies that offer "living benefits," such as retirement income, long-term care coverage and financial protection during emergencies. Half of respondents also say they are interested in a life insurance policy that provides flexible, multi-purpose benefits and allows policyholders to change coverages as needed based on personal life events.

"The reality is many of these wishlist items are already available. People can convert their cash-value life insurance into retirement income. There are products and riders that can cover costs of long-term care services, and life insurers have always allowed policyholders the ability to take loans from the cash value of their policies to pay for school, emergencies, home loans, etc." said Bryan Hodgens, senior vice president and head of LIMRA research, in the news release. "This suggests there is an opening to better communicate the broad ways life insurance can support holistic financial security and we are seeing life insurers rise to the occasion."