The World Looks Different — And So Should Insurance

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Authors

Laura A. Murach, ACS, LLIF, FLMI
Research Director, Distribution Research
LIMRA and LOMA

Amy Plympton
Corporate Vice President, Senior Director, Strategic Initiatives
LIMRA and LOMA

December 2025

As the calendar turns to a new year, many around the world take time to reflect — not just on what’s behind us, but on what lies ahead. The start of a new year often brings fresh perspective, renewed energy, and a sense of possibility. For the life insurance industry, this moment feels especially significant. The traditional model, built around end-of-life protection, is giving way to something more dynamic, more relevant, and more human: insurance for living better every day.

It’s clear that life insurance is entering a new chapter. For decades, life insurance has been something people bought “just in case.” But that mindset is shifting — especially among younger generations. Today, it’s being reimagined not just as a safety net, but also as a tool for living well.

And this transformation isn’t just about redesigning products or rebranding. It’s about keeping pace with how people live, work and plan for the future — and it’s making sure life insurance fits into that evolving story.

Reshaping Expectations

Insights from over 6,000 individuals worldwide aged 18-39 and 200 insurance executives across 18 global markets reveal a clear trend: People under 40 around the world are rewriting the rules. They’re delaying marriage, skipping traditional milestones, and changing jobs more often than any generation before them. At the same time, the global population is aging, and economic growth is slowing. These shifts are reshaping what people expect from financial products — and life insurance is no exception.

By 2050, individuals over 60 will comprise 22 percent of the global population, while the number of younger cohorts will shrink for the first time in history. At the same time, global gross domestic product (GDP) growth is projected to slow to levels reminiscent of the Great Depression. These trends demand that insurance carriers look beyond premium growth and begin delivering tangible value throughout the customer’s life journey.

Figure 1. Demographic Shifts by Age

Source: United Nations

The New Must-Haves

The under-40 demographic wants insurance that fits into everyday life. Younger adults want more than a payout at the end of life. They want benefits they can use now — cash access for major life events, health and wellness perks, coverage for critical illnesses, and protection that evolves with them. These aren’t extras anymore — they’re essentials. As a result, insurance carriers are being pushed to rethink everything — from product design to how they engage with customers.

And the opportunity is massive. The global market for wellness and long-term care services is booming, with trillions of dollars in growth expected over the next decade. But many insurance carriers are still playing catch-up, offering products that feel outdated or out of touch, and many younger consumers say life insurance feels out of sync with their needs — too expensive, too rigid, and not offering enough immediate value.

Wealth Is Rising

Here’s the plot twist: Younger generations are building wealth faster than their parents did. Between 2007 and 2022, the net worth of under-35s jumped by 200 percent. And with trillions set to be passed down through inheritance in the coming years, there’s a huge opportunity for insurance carriers — if they can meet the expectations of the younger generation.

That means designing products that feel relevant, accessible and valuable. It means moving beyond “death protection” and offering real-time benefits that support the younger generation’s financial wellness and lifestyle goals.

What Needs to Change?

To stay relevant, insurance carriers need to take bold steps by rethinking how they build and deliver products, which includes:

Flexible coverage that adapts to life stages and is easy to understand.
Living benefits that are built into the product — not tacked on as confusing add-ons.
Smarter engagement that combines digital tools and human financial professionals to meet customers where they are and seamlessly guide them through their options.
Better education that uses tools such as AI and gamification to provide clear messaging and help people make informed decisions.

Both retail and group insurance must be redesigned to reflect the portability, longevity and personalization that younger consumers are demanding. For group insurance, younger workers want coverage that moves with them — from job to job, and across different life phases. Employers can play a bigger role in offering benefits that support well-being, not just protection.

A Powerful Combo

Financial professionals still matter — a lot. But they need better tools. AI-powered platforms can help them deliver personalized advice and make complex decisions easier. At the same time, insurance carriers need to build partnerships with retail, health, and wealth platforms to expand their reach and relevance.

Legacy systems and siloed data are slowing things down. The companies that invest in smarter technology and more connected ecosystems will be the ones that lead the way.

A New Beginning

As we turn the page to a new year, the message is clear — life insurance is ready for a reset. It’s time to move from “just in case” to “always there.” We’re seeing a shift from insurance as a safety net to a solution the next generation relies on to live better every day.

This means taking bold steps — piloting new products, simplifying underwriting, and positioning insurance as a lifestyle enabler. It means turning living benefits into core value propositions, not clunky add-ons. And it means meeting people where they are — digitally, emotionally, and financially.

It’s about making life insurance something people want to use, not just something they feel they should have. This is a call to action. A chance to turn the page and begin a new chapter, where life insurance truly becomes insurance for the living.

This article is based on a research study, “From life insurance to insurance for the living,” a collaboration between Capgemini, LIMRA, and Future4care.

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