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Top Life Insurance Statistics, Trends & Facts

[Life insurance](https://feather-insurance.com/life-insurance) is one of the oldest forms of insurance and life insurance policies are major contributors to the global financial services market. 


But just how big is the life insurance market and, who contributes to its size? 


In this post, we’ll unpack the latest data on life insurance, the value of the life insurance market, the amounts paid out in claims, and answer questions like “who is looking for additional coverage?”.


## Key life insurance statistics: Our top picks


- The global life insurance market was valued at $3\.1 trillion in 2024\.
- Hong Kong has the highest life insurance ownership rate globally at 79%.
- In both Hong Kong and India, 91% of people believe life insurance is essential.
- 52% of individuals cite cost as the main barrier to purchasing a life insurance policy.
- 72% of people overestimate the cost of basic life insurance coverage.


## How big is the life insurance market?


In 2024, the global life insurance market reached an estimated value of **$3\.1 trillion**, up from **$1\.9 trillion in 2017**.


It is projected to grow by **approximately 9% from 2023 to 2028**, reaching **$4 trillion by 2028**, and **$4\.8 trillion by 2035**.


The **United States accounts for nearly 27%** of global life insurance premiums.


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/01_Contribution-to-global-life-insurance-premiums-by-region-1024x614.png)
In Germany, the life insurance market peaked in **2020**, with **€101\.1 billion** in gross written premiums, representing **3\.1% of the country’s GDP**.


Premiums declined to **€97\.8 billion in 2022** and **€95\.8 billion in 2023**, but the market returned to growth in 2024\.


Between **2025 and 2029**, the German life insurance market is expected to grow modestly at a rate of **0\.19%**.


Sources: [Swiss Re](https://www.swissre.com/press-release/Life-insurance-drives-global-premium-growth-as-interest-rates-remain-higher-for-longer-says-Swiss-Re-Institute/0d31084f-7790-48cf-bd8a-8f4e73e57bc6), [Allianz Global Insurance Report](https://www.allianz.com/en/mediacenter/news/studies/240523-allianz-global-insurance-report.html)**,** [Trading Economics](https://tradingeconomics.com/germany/life-insurance-premium-volume-to-gdp-percent-wb-data.html), [CEIC](https://www.ceicdata.com/en/germany/life-insurance-premium)


## Which countries have the highest rate of life insurance ownership?


**Hong Kong** leads the world with a **79% life insurance ownership rate**, and **84% of its residents** consider life insurance important.


**India** and **Thailand** have the highest proportion of citizens who believe life insurance is essential, both at **91%**.


### **Ownership rates by country:**


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/04_Countries-by-life-insurance-ownership-1024x614.png)
Sources: [LIMRA](https://www.limra.com/en/newsroom/industry-trends/2020/perceptions-about-life-insurance-ownership-around-the-world/)


## How does age affect life insurance ownership?


Age plays a key role in life insurance ownership, with older generations more likely to have coverage:


- **57% of Baby Boomers** (aged 60–78\) have life insurance.
- **55% of Gen X** (44–59\) report owning a policy.
- **50% of Millennials** (28–43\) have coverage.
- **Gen Z**, the youngest generation (under 27\), has the lowest ownership rate at **36%**.


Source: [LIMRA](https://www.limra.com/en/research/research-abstracts-public/2024/2024-insurance-barometer-study/)


## Do men or women own more life insurance?


- **57% of men** report having life insurance, compared to **46% of women**.
- However, **45% of women** say they need more coverage, compared to **39% of men**.


This trend shifts for **single mothers**:


- **41% own life insurance**, while **59% say they need or need more coverage**.


Source: [LIMRA](https://www.limra.com/siteassets/research/research-abstracts-shared/2024/securing-the-future/2024-insurance-barometer---securing-the-future-infographic.pdf)


## What is the average life insurance payout?


The average value of life insurance policies varies by country:


- **United States:** $160,000
- **Japan:** $47,000 (¥7 million)
- **South Africa:** $16,500 (ZAR 300,000\)
- **United Kingdom:** $77,600 (£61,000\)
- **Germany:** $54,200 (€50,000\)


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/06_Average-life-insurance-policy-value-by-country-1024x614.png)
Source: [Capital for Life](https://www.capitalforlife.com/blog/how-much-does-life-insurance-payout)


## **How many people plan to purchase life insurance?**


In 2023, **39% of consumers** reported plans to purchase a life insurance policy.  
Younger generations showed a stronger intent:


- **44% of Gen Z adults** planned to buy life insurance.
- **50% of Millennials** indicated the same.


Overall, **42% of the population** said they either need coverage or need more coverage.  
This need is especially high among **single mothers**, with **59%** expressing the need for coverage.


Source: [LIMRA](https://www.limra.com/siteassets/newsroom/fact-tank/fact-sheets/single-mothers-life-insurance.pdf), [Insurance Information Institute](https://www.iii.org/fact-statistic/facts-statistics-life-insurance)


## **Why do people buy life insurance?**


The most common reason for purchasing life insurance is to cover **burial and final expenses**.


- **60%** of policyholders cite this as their primary motivation.
- Among **single mothers**, this rises to **63%**.


### **Top 5 reasons for owning life insurance:**


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/02_Top-reasons-for-owning-life-insurance-1024x614.png)
Source: [LIMRA](https://www.limra.com/siteassets/newsroom/fact-tank/fact-sheets/single-mothers-life-insurance.pdf), [Insurance Information Institute](https://www.iii.org/fact-statistic/facts-statistics-life-insurance)


## **Why Don’t People Buy Life Insurance?**


The **cost of life insurance** is the most frequently cited barrier.


- **42%** of people without coverage say it’s too expensive.
- However, **72% overestimate the cost** of a basic term life insurance policy.


This trend is also seen among **single mothers**:


- **46%** of single mothers without life insurance consider it unaffordable, compared to **42%** of the general population.


### **Top 5 reasons for not owning life insurance:**


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/03_Top-reasons-for-not-owning-life-insurance-1024x614.png)
**Source:** [LIMRA](https://www.limra.com/siteassets/research/research-abstracts-shared/2024/securing-the-future/2024-insurance-barometer---securing-the-future-infographic.pdf)


## **How Much Is Paid Out in Life Insurance Claims Each Year?**


In 2023, **$831 billion** was paid out globally in life insurance claims, up from **$812 billion in 2022**.


![](https://storage.googleapis.com/popsure-blog-content/1/2025/04/05_Total-amount-of-life-insurance-claims-paid-out-by-year--1024x614.png)
In Germany, life insurers pay out over **€160 billion** annually in term life insurance benefits to the families of policyholders.


Source: [Insurance Information Institute](https://www.iii.org/publications/triple-i-insurance-facts/life-annuity-financial-data/benefits-and-claims), [Statista](https://www.statista.com/statistics/433156/insurance-claims-and-benefits-value-germany/)


## **How many people feel underinsured?**


- **42% of American adults** say they need more life insurance or don’t have enough coverage.
- This figure jumps to **56%** for households earning **under $50,000 per year**.
- **45% of women** report needing more coverage.


Younger generations are also more likely to feel underinsured:


- **49% of Gen Z**
- **46% of Millennials**


Source: [LIMRA](https://www.limra.com/siteassets/research/research-abstracts-shared/2024/securing-the-future/2024-insurance-barometer---securing-the-future-infographic.pdf)

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Life insurance in Germany: The 2026 expat guide

Life insurance in Germany protects your family financially if you die unexpectedly. It pays a lump sum — the **death benefit** — to your chosen beneficiaries, giving them time to adjust without immediate financial pressure.

For expats, the stakes are different than for German nationals. If you've been in Germany fewer than five years, the state survivor pension (*Witwenrente*) likely won't cover your family at all. That makes private life insurance your family's **only financial safety net** from day one.

Whether you're [moving to Germany from the UK](https://feather-insurance.com/blog/moving-to-germany-from-uk), [the US](https://feather-insurance.com/blog/moving-to-germany-from-usa), or [anywhere else](https://feather-insurance.com/blog/how-to-move-to-germany), this guide covers everything you need to know: the types of policies available, what they cost in 2026, how the German tax system treats payouts, and what to look for in a contract. If you're also setting up [expat health insurance](https://feather-insurance.com/health-insurance/expat) alongside life cover, bundling on day one saves time and paperwork.


## What is life insurance in Germany?

A life insurance policy (*Lebensversicherung*) is a contract between you and an insurer. You pay monthly premiums; in return, the insurer pays a lump sum to your beneficiaries if you die during the policy term.

That payout can cover:

- **Outstanding debts** — mortgage, personal loans, credit cards
- **Housing costs** — so your family can stay in their home
- **Daily living expenses** — groceries, childcare, school fees
- **Funeral costs** — which typically run €3,000–€7,000 in Germany

Germany had [82.8 million active life insurance contracts and €99.4 billion in gross written premiums in 2025](https://www.gdv.de/resource/blob/188374/dde4d81192e583ac43e7e80a84aa6ac6/die-deutsche-lebensversicherung-in-zahlen-2025-publikation-pdf-data.pdf) — making it one of the largest life insurance markets in Europe. For more on the market, see our breakdown of [life insurance statistics in Germany](https://feather-insurance.com/blog/life-insurance-statistics).


### Risikolebensversicherung (RLV) vs. Kapitallebensversicherung

In Germany, life insurance comes in three main forms. The German terminology matters because it's what you'll see on every quote and contract:

- **Risikolebensversicherung (RLV)** — term life insurance. Pure protection: it pays out only if you die during the policy term. No savings component, which keeps premiums low. This is what most expats need.
- **Kapitallebensversicherung** — whole life insurance with a savings/investment component. Guarantees a payout whenever you die (as long as you keep paying), but premiums are significantly higher. This product has been in decline in Germany due to low guaranteed interest rates.
- **Fondsgebundene Lebensversicherung** — unit-linked life insurance. Like whole life, but the savings component is invested in funds. Higher potential returns, but also higher risk. Rarely the right choice unless you have a specific investment strategy.

For most expats and families, **Risikolebensversicherung (term life) is the right product**. The rest of this guide focuses on term life unless stated otherwise.




If you've got a family, a mortgage, or anyone depending on your income, life insurance might matter more than you'd think. We'll walk through term vs. whole life, how much cover to get, and how long to keep your policy.


Is life insurance worth it in Germany?

Théo from Feather explains everything expats need to know about life insurance in Germany. Covers when life insurance makes sense, the difference between term and whole life, how much coverage to get, how long to keep it, and how to buy a policy in English.
