Workplace Life Insurance Premiums Rise Amid Mixed Disability and Supplemental Health Trends

Workplace life insurance new premiums increased by 9% in the third quarter of 2025, reaching $691 million. Despite a 3% decline year-to-date, many carriers showed gains, with the top 10 companies accounting for 64% of sales. Permanent and term life insurance premiums rose 8% and 9% respectively for the quarter, although term sales are 4% lower year-to-date. Lack of employee awareness about non-medical benefits such as life, disability, and critical illness insurance remains a significant barrier to participation. LIMRA research highlights that under half of workers review their life insurance benefits closely, with 10-15% ignoring or not recalling the information, underscoring a need for better education efforts by carriers, brokers, and employers. Workplace disability insurance new premiums fell 3% to $620 million in Q3 2025, with short-term disability declining 1% and long-term disability down 6%. Year-to-date, total disability premiums decreased 5% to $3 billion, with the top 10 carriers representing 74% of sales. Supplemental health insurance products, including accident, critical illness, cancer, and hospital indemnity, experienced a 7% drop in new premiums to $508 million in Q3. Year-to-date, supplemental health premiums declined 5% to $2.5 billion, with group workplace products down 5% and individual workplace products contracting 3%. The top 10 carriers accounted for 66% of sales. LIMRA’s data covers over 90% of the annualized premium markets for life, disability, and supplemental health insurance, providing comprehensive insights into market trends. The findings emphasize the need for collaborative efforts among insurers, employers, and brokers to enhance awareness and participation in workplace benefits amid economic uncertainties.