Demand for life insurance is rising in 2025
In 2025, more Americans are seeking life insurance policies than in previous years. With financial uncertainty, rising healthcare costs, and economic shifts, families are reconsidering how to protect their future.
The Life Insurance Marketing and Research Association (LIMRA) reports that:
“More than 39% of Americans say they intend to purchase life insurance this year, the highest rate in a decade.”
One reason is the impact of recent events such as inflation and job market volatility. A growing number of self-employed and gig economy workers are also exploring policies for income protection.
Simpler policies and faster approval
Technology is changing how life insurance is bought in 2025. Many companies now offer no-medical-exam policies with same-day approvals.
“We’re seeing a sharp rise in demand for simplified issue life insurance,” said Marvin James, spokesperson for PolicyWave, an online insurance platform.
“People want fast, hassle-free coverage. In many cases, we can now approve a term policy within 24 hours.”
Digital tools also help customers compare multiple options instantly. Younger buyers especially prefer mobile apps to traditional agents.
“Our data shows that 65% of applicants under 35 prefer buying life insurance entirely online,” said Ella Watson, data lead at InsureTech Insights.
Younger Americans are buying sooner
In past decades, life insurance was often something people considered after marriage or having children. But in 2025, younger generations are buying earlier.
“There’s a growing awareness that life insurance isn’t just for parents,” explained Tara Fields, advisor at NewLife Financial.
“Millennials and Gen Z are realising it can be a financial tool for debt coverage, estate planning, and even savings.”
One example is Amanda, a 27-year-old freelance designer in Austin. She recently purchased a $500,000 term life policy.
“I don’t have kids yet, but I have student loans and a co-signed car loan. If something happened to me, I don’t want my family burdened.”
Also Read: Car insurance quotes in 2025: What drivers need to know
More customisation and living benefits
Life insurance in 2025 is also more flexible. Many policies offer “living benefits” features that allow policyholders to access funds in case of chronic illness or medical emergencies.
“Living benefits are becoming standard with modern policies,” said Chris Donahue, underwriter at SecureLife USA.
“It’s not just about death benefit anymore. People want to know how a policy can help them while they’re still alive.”
Customisable riders, like critical illness and disability cover, are also more common in today’s plans.
Premiums and inflation concerns
Despite inflation concerns, life insurance premiums in 2025 remain largely stable, especially for term policies. Insurers have introduced pricing models based on healthier lifestyles and wearable data.
“We offer discounted rates to clients who wear fitness trackers and meet step goals,” said Leona Carter, product manager at LifeSync Insurance.
“That data gives us a clearer risk picture and lets us reward healthy habits.”
Experts advise comparing at least three quotes and reviewing policy details carefully.
“The key is understanding what you’re buying,” warned Daniel Ortiz, an independent agent in New York.
“Don’t focus only on the price. Look at term length, exclusions, and benefits.”