Life insurance applications from Americans aged 28 to 43 have jumped 23% year-over-year, continuing a trend that began during the pandemic era. According to LIMRA's quarterly report, millennials now represent the fastest-growing segment of new life insurance buyers, overtaking Generation X for the first time in the association's tracking history.
The shift is being driven by a combination of factors including increased awareness of mortality risk, growing family responsibilities, and the rise of simplified-issue digital platforms that allow applicants to obtain coverage without a medical exam. Companies like Ladder, Haven Life, and Bestow have made purchasing a term life policy as simple as completing an online form in under ten minutes.
Financial advisors welcome the trend but caution that many younger buyers are underinsured. The average policy amount purchased by millennials is $250,000, which experts say may be insufficient for families with mortgages and young children. The Insurance Information Institute recommends coverage of seven to ten times annual income for primary earners with dependents.
