Top Life Insurance Statistics, Trends & Facts (2025)

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.

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, Allianz Global Insurance Report, Trading Economics, CEIC

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:

Sources: LIMRA

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

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

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)

Source: Capital for Life

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, Insurance Information Institute

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:

Source: LIMRA, Insurance Information Institute

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:

Source: LIMRA

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.

In Germany, life insurers pay out over €160 billion annually in term life insurance benefits to the families of policyholders.

Source: Insurance Information Institute, Statista

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