Life insurance application activity hits record growth in 2025, MIB reports

Life insurance application activity closed the year up 22% in December, the MIB Life Index reported, helping 2025 set a record for growth.

Application activity grew 6.8% in one year, 6.7% compared to 2023, and 9.8% compared to 2022, the MIB 2025 Annual Report found. It represented the highest total volume of annual application activity seen in the last 10 years.

Activity followed a steady upward trend throughout the year, MIB reported. The first quarter saw growth of nearly 1%, while the second quarter saw 3% growth. Activity kicked into high gear in the second half of 2025, with 9% growth in the third quarter and more than 15% in the final quarter.

All four quarters of 2025 either matched or outperformed activity in the corresponding quarter for each of the previous four years.

All age bands saw annual year-over-year growth in 2025, with growth rates increasing as age increases, and achieving double-digit growth for ages 61 and above, MIB found. Ages 71 and above led in application growth throughout the year, in the double-digits for all months except for February.

The relative volume of application activity by age group remained flat year over year across all age bands, MIB said. In 2025, the percent of total applications by age band is as follows:

Ages 0-30, down 1.1% over 2024, totaling 22.4%; ages 31-50, down 1% totaling 41.8%; ages 51-60 down 0.1%, totaling 16.3%; ages 61-70 up 0.9%, totaling 12.9%; and ages 71+ up 1.3%, totaling 6.6%.

More than 65% of total applications in 2025 were for amounts up to and including $250,000, MIB reported. With year-over-year growth of 6.7%, this face amount band had “a significant impact on the overall record-breaking results in 2025,” MIB said in a news release.

Term activity booming

Term life was “a key driver” of aggregate record-breaking growth in 2025, MIB said, accounting for more than 52% of total application volume, based on data where product type is submitted to MIB, and with growth of 17.5% over 2024.

Term applications activity saw growth across all age bands, in a pattern where the percentage increased as age bands increased, reaching the double digits for ages 31-70 and triple digits for 71 and above.

In 2025, the percentage of total applications for males at 47.7% outpaced that for females at 45.4%.

LIMRA data on new premium tracks the MIB findings. New annualized premium hitting record highs in 2021, 2022 and 2024 and premium expected to do it again in 2025. But LIMRA’s 2026 forecast suggests that while growth will continue, it will be moderated as consumers’ concern about economic uncertainty increases.

Despite strong demand fundamentals, the economic backdrop entering 2026 looks very different from the conditions that fueled recent growth, LIMRA said.

“LIMRA’s Consumer Sentiment study shows that 52% of Americans are highly concerned about the economy. Inflation remains stubborn, and although easing, it is still above pre pandemic levels,” noted Bryan Hodgens, senior vice president and head of LIMRA Research. “The Federal Reserve has taken a slower than expected approach to lowering interest rates, though stabilization around 3% is anticipated this year. Rising unemployment, meanwhile, is expected to pressure middle market consumers—particularly those shopping for term life.”

Against this backdrop, LIMRA projects overall life insurance new annualized premium to grow between 2% and 6% in 2026, slightly above the historical average of 3.1% but well below the double-digit surge of 2025.

Positive factors

Even with economic headwinds, several forces are expected to support continued expansion. Among them are:

• Private equity will continue to invest in the life insurance industry, providing capital that supports innovation, product development, and long-term growth capacity.
• The industry is shifting from early experimentation with AI to real deployment. Expect to see AI-driven improvements in underwriting, service, sales enablement, and cost efficiency. These enhancements will help carriers scale more effectively and improve the customer experience.
• Better digital experiences and streamlined processes are encouraging more financial professionals to incorporate life insurance into their planning conversations. This expansion — both in channels and in advisor engagement — will be a meaningful growth driver.
• LIMRA research shows there is rising interest in long-term care solutions, and other hybrid insurance solutions will attract broader audiences. Millennials, in particular, are showing strong interest in life insurance products that include long-term care benefits or other living benefits. As healthcare costs rise, combo products are becoming more attractive, broadening the market and appealing to younger demographics.

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