15 New Whole Life Insurance Statistics and Trends

If you are considering the purchase of a new whole life insurance policy, you may want to review the current life insurance trends in the life insurance industry that relate to whole life insurance to become better informed about this type of life insurance coverage.

Here is a list of Whole Life Insurance Statistics and Trends for 2024:

According to the American Council of Life Insurers (ACLI), whole life insurance policies made up 34% of all new life insurance policies sold in 2023. 

This figure shows that whole life insurance is retaining its popularity as a preferred choice among consumers for permanent coverage and accumulated cash value benefits.

LIMRA’s research indicates that the total face value of whole life insurance policies purchased in the United States went up by 4% from 2022 to 2023. 

This growth reflects a renewed interest and trust in whole life insurance as a stable and valuable financial product.

A report from the National Association of Insurance Commissioners (NAIC) shows that 62% of whole life insurance policyholders view their policies as a form of forced savings. 

This sentiment aligns with the idea that whole life insurance is not just about protection, but also about building a financial nest egg over time.

The Insurance Information Institute (III) noted that the average death benefit for whole life insurance policies issued in 2023 was $155,000. 

This provides a baseline for understanding the typical coverage amounts that people are choosing for their whole life policies.

Recent data from LOMA reveals that 78% of whole life insurance policyholders expressed satisfaction with their policy’s performance in 2023. 

This high satisfaction rate demonstrates strong policyholder loyalty and perceived value.

The U.S. Census Bureau indicates that 49% of new whole life insurance policyholders in 2023 were under the age of 40. 

This suggests that younger generations are increasingly recognizing the benefits of whole life insurance for long-term financial planning.

Hopefully, these statistics and trends will help you make a better informed decision about buying your whole life insurance policy.

33 New Life Insurance Statistics and Trends

Here is a list of some of the newest statistics and trends 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.

Review the complete list of 33 New Life Insurance Statistics and Industry Trends for 2024.