While fewer people hold life insurance policies today than did a decade ago,1 there are signs of growth, even among the relatively young. But to navigate the changing landscape, insurers need to be smart about how they use data to acquire customers, notify beneficiaries and promote fairness. The 2025 Life Insurance Annual Outlook from TransUnion® draws from exclusive data and market analyses to provide insight on next steps.
A growth mindset for life insurance?
Today, nearly 60% of consumers own some form of life insurance. While that's well below the early 21st century peak, it does represent a rebound from a pandemic-era dip.2 The good news is a resounding 58% of those surveyed by TransUnion indicated they’d be more interested in purchasing a life policy at the right price price3 — and in fact, many substantially overestimate the price of a policy.4 Carriers can educate consumers on the value of life insurance and get in on an upward swing among younger consumers: In 2023, applications by consumers under the age of 50 outpaced all other age groups,5 and 2024 once again saw application upticks in that demographic.6
Connecting to life insurance shoppers at the right time
Consumers are driven to shop for life insurance by major milestones that only happen a few times in a lifetime: Nearly 50% of consumers surveyed in 2024 said they were spurred to action by events like marriage, the birth of a child or death of a loved one (Figure 1).7
Figure 1. Motivations for life insurance shopping7
How can you connect with potential customers in those crucial moments? Some carriers use QR codes or text-to-join social numbers to transform traditional direct mail into an omnichannel campaign. Digital channels are an increasingly important entry point for consumers, but talking to a live agent at some point during the complex shopping journey remains crucial.8
Fulfilling promises to pay
Because many life insurance policies have durations spanning decades, their existence may be forgotten and the contact info for their beneficiaries may be out of date. In a 2024 TransUnion survey, 59% of consumers admit they don't know how to determine if they’re a beneficiary of a life insurance policy — and were almost entirely unaware of the NAIC Life Insurance Policy Locator. The NAIC recently indicated that tens of millions of dollars in death benefits go unclaimed each year.11
This highlights the opportunity for education around consumer resources — and for carriers to add value by effective use of data. By connecting consumers to their deceased loved ones' life insurance policies or annuity contracts, insurers have a unique opportunity to grow a new policyholder, though naturally such interactions must be handled with sensitivity.
Opportunities ahead for forward-looking carriers
Signs of growth are emerging for insurance carriers willing to adapt. Success lies in balancing digital channels with the human touch. Data, including the use of external consumer data and information sources, can drive an improved customer experience, reducing the need for invasive medical exams and enabling near-instant quotes. And marketing outreach can meet consumers where they are, generationally, and help bridge the consumer education gap regarding life insurance products, pricing and benefits.
Ready to dig deeper? Check out the complete 2025 Life Insurance Annual Outlook for detailed insights and analysis. And if you’d like to learn more about TransUnion solutions to help your business, visit our Life Insurance Solutions page.
