Life Insurance Claims Statistics 2025: What You Need to Know
Barry Elad
Updated · Jan 14, 2025
Life insurance is more than just a policy; it’s a promise. Imagine the relief of a family securing their future after an unexpected loss, knowing they are financially covered. This sense of security underscores why life insurance continues to be an essential part of financial planning. With evolving trends and increasing claims, understanding the data behind life insurance claims in 2025 offers valuable insights into how policies serve millions. Whether it’s claim trends, payouts, or the reasons for buying, the numbers tell a compelling story.
Editor’s Choice: Key Life Insurance Claim Statistics
- $790 billion in total life insurance benefits were paid in the United States in 2023, showing a steady 4% increase from the previous year.
- The average claim payout for term life insurance policies in the US reached $180,000 in 2023, reflecting growing policy values.
- 91% of claims filed in 2023 were approved, maintaining a high industry standard for reliability and trust.
- Heart disease remained the leading cause of life insurance claims, accounting for approximately 24% of total claims.
- Claims processed online have increased by 28% over the past three years, improving efficiency and accessibility for policyholders.
- The gender gap in life insurance coverage narrowed, with women accounting for 45% of all new policies in 2023 compared to 38% in 2020.
- Millennials are driving life insurance purchases, making up 47% of new policyholders in 2023, highlighting a shift in awareness among younger demographics.
Life Insurance Facts and Statistics
- 54% of Americans owned some form of life insurance in 2023, up from 52% in 2022, marking a steady rise in coverage awareness.
- The global life insurance market was valued at $3.8 trillion in 2023 and is projected to grow at a 5.5% CAGR through 2028.
- The US leads the market with $600 billion in premiums, representing 32% of the global market share.
- Group life insurance policies accounted for 40% of total life insurance policies in force in 2023, emphasizing employer-sponsored plans.
- The average cost of a 30-year term life insurance policy for a 35-year-old nonsmoker was $27 per month in 2023.
- Only 30% of policyholders in the US had critical illness riders added to their policies, despite growing awareness of health risks.
- Life insurance claims for non-accidental deaths increased by 7%, a trend partially attributed to health crises and an aging population.
Leading Causes of Life Insurance Claims
- 24% of all life insurance claims in 2023 were attributed to heart disease, making it the leading cause of claims globally.
- Cancer-related deaths accounted for 18% of total life insurance claims, underscoring the ongoing health risks faced by policyholders.
- Accidental deaths represented 12% of claims, with road accidents being the most common cause within this category.
- Claims due to COVID-19 complications declined by 60% compared to 2022, reflecting improved healthcare outcomes.
- Stroke-related fatalities formed 10% of life insurance claims, indicating the prevalence of cerebrovascular health issues.
- Respiratory diseases, such as chronic obstructive pulmonary disease (COPD), contributed to 8% of claims in 2023.
- Claims due to suicide accounted for 4%, highlighting the need for mental health awareness and support systems.
Life Insurance Claims by Age and Gender
- Policyholders aged 50 to 64 accounted for the largest share of claims at 39%, reflecting higher risks in this demographic.
- Claims filed by policyholders aged 65 and above increased by 15% in 2023, driven by rising life expectancy and aging populations.
- Women accounted for 37% of life insurance claims, showcasing improved coverage among female policyholders.
- Men still lead in total claims, contributing to 63%, partly due to higher coverage values.
- The average claim payout for women in 2023 was $145,000, while men averaged $185,000, pointing to a coverage gap that is gradually narrowing.
- Younger policyholders (under 35 years old) accounted for 9% of claims, with accidents and health emergencies being the top causes.
- The child rider claims category saw a 5% rise, primarily due to increased adoption of family-inclusive insurance plans.
Claim Payout Amounts and Trends
- The average life insurance claim payout in the US rose to $185,000 in 2023, marking a 6% increase from 2022.
- Whole life insurance policies saw the highest payouts, averaging $240,000 per claim, compared to $150,000 for term policies.
- Over 85% of claims were paid out within 30 days, reflecting improvements in processing efficiency across the industry.
- Non-contestable claims accounted for 95% of payouts, indicating high transparency in policy administration.
- The total claim payout by US insurers reached $790 billion in 2023, with a projected increase of 4% for 2024.
- Beneficiaries under joint life insurance policies received an average of $320,000, showcasing their value in family financial planning.
- The largest claim payout reported in 2023 was $25 million, linked to a high-value universal life policy.
| Metric | Value |
| Average payout (2023) | $185,000 |
| Whole life policies average payout | $240,000 |
| Term policies average payout | $150,000 |
| Claims paid within 30 days | 85% |
| Non-contestable claims | 95% |
| Total payouts (2023) | $790 billion |
| Projected increase (2024) | 4% |
| Largest reported claim payout (2023) | $25 million |
Claim Processing Times and Efficiency
- 72% of life insurance claims in 2023 were processed within 10 business days, up from 68% in 2022, reflecting better technology integration.
- Online claims accounted for 45% of total submissions, showing a 30% increase compared to pre-pandemic levels.
- Claims requiring medical reviews took an average of 28 days, while non-medical claims averaged just 7 days for processing.
- Insurers with automated claim processing systems achieved a 95% satisfaction rate among beneficiaries.
- The rejection rate for life insurance claims was 2.4%, mostly due to incomplete documentation or lapsed policies.
- Over 80% of policyholders surveyed in 2023 expressed satisfaction with their insurers’ claim handling processes.
- Claims from policies with accelerated death benefit riders were processed 40% faster, benefiting terminally ill policyholders.
Policy Types and Their Claim Rates
- Term life insurance policies accounted for 60% of total claims in 2023, highlighting their popularity for affordable coverage.
- Whole life policies represented 25% of claims, often linked to long-term financial planning.
- Claims from universal life insurance policies grew by 10%, driven by their flexibility and cash value benefits.
- Policies with critical illness riders had a 25% higher claim rate, reflecting the increasing prevalence of health-related payouts.
- Group life insurance policies, offered by employers, accounted for 18% of claims, showcasing their role in workplace benefits.
- Indexed universal life insurance claims grew by 15%, emphasizing the policy’s appeal in market-linked financial growth.
- Accidental death policies reported the highest claim approval rate at 98%, often tied to straightforward eligibility criteria.
Reasons for Buying Life Insurance Stats
- 78% of policyholders cited family financial protection as the primary reason for purchasing life insurance in 2023.
- Education funding for children was a motivating factor for 38% of buyers, particularly among millennials.
- Debt repayment, including mortgages, influenced 42% of new life insurance purchases.
- Estate planning accounted for 30% of policies sold, reflecting the need for wealth transfer solutions.
- Rising healthcare costs led 20% of buyers to add critical illness riders to their policies in 2023.
- 51% of policyholders purchased life insurance after a major life event, such as marriage or having a child.
- The appeal of tax advantages drove 25% of high-net-worth individuals to invest in permanent life insurance policies.
Recent Developments in Life Insurance Claims
- AI-powered underwriting reduced claim processing times by 35%, streamlining policyholder experiences.
- The introduction of blockchain-based verification systems in 2023 increased security and transparency in claims.
- InsurTech startups saw a 20% growth, offering innovative, customer-focused solutions for life insurance claims.
- Pandemic-related claim trends diminished, with a 50% drop in COVID-19-related claims compared to 2022.
- Enhanced mental health coverage riders gained traction, with adoption rates increasing by 15% in 2023.
- Climate-related mortality claims, such as those linked to natural disasters, rose by 8%, reflecting changing global risk patterns.
- Digital-first insurers experienced a 40% increase in claim submissions, driven by their user-friendly platforms and faster approvals.
Conclusion
Life insurance continues to play a pivotal role in safeguarding financial security for families and individuals. The statistics for 2024 reflect evolving trends in policyholder preferences, technology-driven efficiency, and the rising importance of tailored coverage options. Whether driven by health concerns, financial planning, or global developments, life insurance remains an integral tool in mitigating risk. As the industry adapts to changing needs and innovative technologies, it is well-positioned to serve a broader and more diverse audience in the years ahead.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
