Record 2025 Life Insurance Application Growth Amid Economic Concerns
In 2025, life insurance application activity reached new heights, with a remarkable 22% increase in December reported by the MIB Life Index. This surge set a historic benchmark for the industry, as application activity climbed by 6.8% year-over-year. When compared to 2023, the growth was 6.7%, and compared to 2022, it was 9.8%, marking the highest annual volume recorded in a decade.
The insurance sector saw consistent growth throughout 2025. The first quarter revealed a nearly 1% improvement, followed by a 3% increase in the second quarter. Growth momentum continued with a 9% rise in the third quarter and surpassed 15% in the final quarter. Each quarter either matched or exceeded activity levels from similar periods over the last four years.
Age Demographics and Policy Trends
Growth spanned all age demographics, with older age groups showing particularly robust increases. Applicants aged 61 and above experienced double-digit growth. However, while applicants aged 71 and over consistently drove application increases, there was a noted slowdown in February.
The distribution of application activity by age group remained stable year-over-year in 2025. Applications from those aged 0-30 comprised 22.4%, reflecting a 1.1% decrease from the previous year. Meanwhile, the 31-50 age group accounted for 41.8%, down by 1%, and the 51-60 bracket saw a minimal drop to 16.3%. The 61-70 and 71+ age categories experienced slight rises to 12.9% and 6.6%, respectively.
Policy Preferences and Gender Distribution
More than 65% of applications in 2025 were for policies with face amounts up to $250,000, significantly influencing the record-setting outcomes reported by MIB. Term life insurance, a key growth driver, represented over 52% of total applications and grew by 17.5% compared to 2024. All age groups, especially older applicants, saw increased term life application activity, with those over 71 witnessing triple-digit growth.
The gender distribution showed a predominance of male applicants, with 47.7% of applications from males compared to 45.4% from females. These dynamics indicate shifting preferences and demographic engagement within the life insurance market.
Economic Insights and Future Outlook
LIMRA's data on new premium trends supports MIB's findings, highlighting record highs in annualized premium growth from 2021 to 2024. However, a forecast for moderated growth into 2026 is due to consumer economic concerns. LIMRA anticipates a new annualized premium growth rate of 2% to 6% in 2026, a tapering from 2025's double-digit increases.
According to Bryan Hodgens, senior vice president of LIMRA Research, economic pressures are influencing consumer sentiment. With inflation remaining elevated, interest rate adjustments being gradual, and potential rising unemployment, middle-market consumers might face challenges in the term life insurance realm.
In 2026, despite economic uncertainties, industry expansion is expected to continue, underscoring the need for strategic planning and adaptability in the insurance sector. These trends highlight the importance of addressing regulatory compliance requirements and optimizing risk management strategies to maintain growth.