Term Insurance Market Size, Share & Industry Analysis, By Insurance Type (Level Term Insurance, Decreasing Term Insurance, Return of Premium Term Insurance, and Convertible Term Insurance), By Policy Duration (Short-Term (1-5 years), Medium-Term (6-15 years), and Long-Term (16-30 years)), By Payment Frequency (Monthly, Quarterly, and Annually), By Distribution Channel (Bancassurance, Direct to Consumer/Online, Independent Agents and Brokers, and Workplace), and Regional Forecast, 2025-2032

The global term insurance market size was valued at USD 752.79 billion in 2024. The market is projected to grow from USD 804.33 billion in 2025 to USD 1,219.22 billion by 2032, exhibiting a CAGR of 6.12% during the forecast period. 

Term insurance is a type of life insurance where the financial protection is offered based on an agreed length of time, which is also known as term. It pays a death benefit to the beneficiaries in the event of death of the insured person within the term, but no cash value is given out in cases where the insured outlives the policy. This makes it a clear protection plan with high coverage at low premiums.

The major forces behind the growth of the market are the increased consumer interest in financial security, the changing demographics, such as population increase in the emerging markets, and the popularity of online platforms for purchasing policies. Technological development, including AI-enabled underwriting and streamlined online applications, are also making term insurance more accessible and efficient. Moreover, economic aspects, including increased disposable incomes and affordable product features, are making term insurance more attractive to a larger segment of the population.

The top firms in the industry are Allianz SE, Ping An Insurance (Group) Company of China, Ltd., China Life Insurance Company, Nippon Life Insurance Company, MetLife, Inc., and AXA S.A.

MARKET DYNAMICS

Market Drivers

Digital Transformation Drives Market Growth

The concept of digital transformation is revolutionizing the market by increasing efficiency in various areas of operations, including underwriting, claims, and policy administration. Using modern digital tools platforms, the insurance business can prepare to automate daily processes, significantly minimize mistakes, and decrease business costs. More precise, data-driven risk management and a personalized approach to customer interaction have become possible under this technological change. According to Forbes, approximately 79% of consumers prefer to interact with insurance companies via digital platforms. The increasing use of digital interfaces is transforming customer experiences and enabling innovation, which, combined, are powerful drivers of the continued term insurance market growth.

Market Restraints

Cybersecurity Risks Impacting Data Protection and Growth 

The digitization of the term insurance market also presents a greater threat to cybersecurity, which can be extremely difficult to mitigate, particularly in terms of risks to information protection and business continuity. Insurers deal with huge amounts of personal and sensitive financial data and, therefore, are the primary targets for data breaches, identity theft, and other digital fraud. These incidences may severely damage client trust and result in substantial regulatory fines. Thus, insurers need to invest in the latest tools in the sphere of cybersecurity, make sure that all the rules regarding data privacy are observed, and raise awareness within the organization. Such proactive steps are crucial in protecting insured information and ensuring its integrity, without which the market would not be able to grow healthily in the long term.

Market Opportunities

Growth Through Emerging Economies and Underinsured Segments Drive Growth, Creating Opportunities

The insurance market in emerging economies are opening up growth prospects, particularly in regions where life insurance penetration remains low. The rising disposable incomes, rising financial literacy, are well as the government support for insurance awareness, are fueling demand in these areas. Targeted insurers operating in such segments can cater to first-time consumers, particularly millennials, young families, and professionals, with dedicated products that meet their specific needs. In addition, the use of new distribution channels including mobile platforms and micro-insurance can help reach underserved or remote populations. These initiatives help insurers to diversify their portfolios, enter new groups of customers, and maintain long term growth.

TERM INSURANCE MARKET TRENDS 

Insurance Technology Driving Operational Efficiency Emerges as a Major Market Trend

The term insurance market is undergoing a major transformation due to the implementation of new insurance technologies, namely Artificial Intelligence (AI), Internet of Things (IoT), and big data analytics. These technologies simplify the basic operations because it automates the process of underwriting, claims management, and customer service, which enhances efficiency and accuracy and lower costs and human error. The ability to detect fraud and present a customized product offer is also of great value. Through such digital solutions, insurers enhance the speed and agility of their operations, which provides them with a competitive advantage. 

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SEGMENTATION ANALYSIS

By Insurance Type

Increased Awareness of Financial Planning Boosts Level Term Insurance Segment Growth

Based on the insurance type, the market is segmented into level term insurance, decreasing term insurance, return of premium term insurance, and convertible term insurance.

The level term insurance segment held the largest revenue share of USD 494.76 billion in the overall global market in the year 2024. The segment holds the highest CAGR of 6.56%. The segment’s growth is attributable to its widespread adoption, which offers expectable premiums and straightforward coverage, making level term insurance highly attractive to both first-time policyholders and experienced consumers. It is further supported by increasing awareness of financial planning, rising disposable incomes, and the preference for long-term risk protection, positioning this segment for the highest growth throughout the forecast period.

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Medium-Term (6-15 Years) Segment Leads Market Owing to Its Affordability and Sufficient Coverage Duration

Based on policy duration, the market is divided into short-term (1-5 years), medium-term (6-15 years), and long-term (16-30 years).

The medium-term (6-15 years) segment leads with a market share of USD 358.00 billion. The segment is performing well as it provides an optimal balance between affordability and a sufficient coverage period, attracting a wide range of policyholders. Consumers tend to choose medium-term policies because they allow for financial protection without the high premium cost that comes with long-term coverage. This makes the segment particularly attractive to young professionals, families with short- to mid-term financial obligations, and those looking for flexibility in their insurance planning.

Long-term (16-30 years) captured the maximum CAGR of 7.10% for the global market. The growth of this segment is largely due to growing consumer awareness of the need for financial security over a sustained period and long-term life planning. Policyholders are increasingly looking for coverage that last years or decades so that they can protect dependents, prepare for retirement, and protect from unforeseen events across long-term horizon. Increased disposable incomes, increased penetration of life insurance in developing economies, and the increased popularity of long-term savings and investment-linked products will drive and support demand for long-duration term policies.

By Payment Frequency

Convenience of Making a Single Yearly Payment Augments the Annually Segment Growth

Based on the payment frequency, the market is divided into monthly, quarterly, and annually. 

The annually segment accounted for the largest term insurance market share at USD 325.97 billion in 2024. The growth is because a significant portion of policyholders prefer the convenience of making a single yearly payment, which simplifies financial planning and reduces administrative effort. This preference is reinforced by insurers offering discounts or incentives for annual premiums, making it a cost-effective choice for middle- and high-income consumers seeking straightforward coverage. Additionally, corporate and group policies are often structured around annual payments, further strengthening this segment’s dominance.

Monthly represent the largest CAGR at 8.31% in the global market. The segment’s growth is attributable to the growing demand for flexible and affordable payment options, particularly among younger, urban, and digitally savvy consumers. The expansion of online insurance platforms and mobile payment solutions has made monthly premiums more accessible, while insurers are increasingly promoting micro-premium plans to attract first-time policyholders. This trend is further supported by rising awareness of financial planning and the convenience of spreading costs over smaller installments, driving rapid adoption in the forecast period.

By Distribution Channel

Personalized Guidance Augments the Independent Agents and Brokers Segment Growth

Based on the distribution channel, the market is divided into Bancassurance, direct to consumer/online, independent agents and brokers, and workplace.

In 2024, the independent agents and brokers segment led with a share of USD 313.66 billion. The growth of this segment can be attributed to its ability to connect with consumers, compare products from multiple carriers, and provide customer-specific solutions to address individual financial needs. Their strong local presence and ability to build long-term relationships foster trust which is of great value in markets where consumers prefer expert advice before committing to a life insurance policy.

Direct to consumer/online is projected to have the largest CAGR at 8.29% within the global market due to rapid digital adoption and consumer preference toward self-service option. Policyholders can easily compare plans, get instant quotes, and purchase policies on online platforms, mobile apps, and web portals with minimal effort, minimizing reliance on intermediaries. This mode is particularly popular with the younger, urban, and digitally savvy populations who prefer convenience, transparency, and speed. Insurers are also providing more digital-first products and targeted marketing to sustain the channel’s adoption and over the forecast period.

TERM INSURANCE MARKET REGIONAL OUTLOOK

Geographically the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa.

North America

North America is currently leading the market. The market size was valued at USD 261.86 billion and USD 282.28 billion in 2023 and 2024 respectively. The region’s growth is attributable to the established insurance industry, increased consumer awareness, and strong regulatory frameworks that promote trust in term life products. The increased availability of diverse policy options, high disposable incomes, and a mature financial planning culture, also results in increased adoption of term insurance.

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The U.S. is at the forefront of the North American market, with expected revenue of USD 226.80 billion in 2025. The growth is attributable to strong consumer demand for customizable products, particularly for income and mortgage protection.

Europe

The European market is substantially growing and is likely to contribute to a revenue share of USD 229.41 billion in 2025. The region’s growth is attributable to economic uncertainties and a rising awareness of the need for financial security, supported by digital platforms and increased competition.

The U.K., Germany and France are some of the leading contributors to the growth in the market, with the required revenue stake of USD 58.76 billion, USD 46.94 billion and USD 27.74 billion respectively by 2025.

Asia Pacific 

Asia Pacific is expected to have the highest CAGR of 7.40%, solidifying the market as the fastest growing. The market size was valued at USD 175.41 billion in 2025. The region’s growth is attributable to rising life insurance penetration, growing middle-class populations, and increasing awareness of financial protection and long-term planning. Other components include rapid urbanization, expanding digital distribution channels, and supportive government initiatives for life insurance.

India and China are major contributors to the term insurance market growth with an expected revenue share of USD 17.95 billion, and USD 64.50 billion respectively by 2025.

South America and Middle East & Africa

The markets of South America and Middle East & Africa are growing with an expected share of USD 52.70 billion and USD 43.92 billion respectively in 2025 due to increased financial inclusion, rising awareness, and digital adoption.

GCC countries are predicted to have a market share of USD 10.90 billion by 2025. 

COMPETITIVE LANDSCAPE

Key Industry Players

Top Firms Focus On Partnerships and Innovation to Lead the Industry

The top firms in the industry are Allianz SE, Ping An Insurance (Group) Company of China, Ltd., China Life Insurance Company, Nippon Life Insurance Company, MetLife, Inc., and AXA S.A. The firms focus their strategies on innovation, research and development (R&D), and strategic partnerships to remain competitive. They also invest in developing advanced laser technology, including RGB laser solutions, to offer higher brightness, improved color accuracy, and better longevity for cinematic, educational, and commercial applications. They also use partnerships and geographic expansion to strengthen their market presence. 

LIST OF KEY TERM INSURANCE COMPANIES PROFILED

• Allianz SE (Germany)
• Ping An Insurance (Group) Company of China, Ltd. (China)
• China Life Insurance Company (China)
• Nippon Life Insurance Company (Japan)
• MetLife, Inc. (U.S.)
• AXA S.A. (France)
• Assicurazioni Generali S.p.A. (Italy)
• Life Insurance Corporation of India (India)
• Zurich Insurance Group Ltd. (Switzerland)
• New York Life Insurance Company (U.S.)
• Sumitomo Life Insurance Company (Japan)

KEY INDUSTRY DEVELOPMENTS

• October 2025- LIC of India, the country's largest insurer, announced the launch of two new insurance products: 'LIC's Jan Suraksha', a micro-insurance plan, and 'LIC's Bima Lakshmi', a savings-oriented life insurance plan. Both are non-par, non-linked individual plans targeting the domestic market. This launch demonstrates LIC's commitment to expanding its product portfolio and addressing diverse customer needs across different income segments. 
• September 2025- Axis Max Life Insurance Limited formerly known as Max Life Insurance Company Limited and India Post Payments Bank announced a strategic partnership aimed at delivering affordable life insurance solutions beyond Tier 1 into emerging regional markets across rural India.
• September 2025- RBL Bank entered into a bancassurance partnership with Life Insurance Corporation of India (LIC), the country's largest life insurer. This strategic collaboration will enable RBL Bank customers to access LIC's comprehensive range of life insurance products through the Bank's extensive branch network and digital channels.
• April 2025- Life Insurance Corporation of India (LIC), the country’s largest insurer, is in advanced discussions to acquire up to a 50% stake in ManipalCigna Health Insurance, signaling its strategic entry into the fast-growing health insurance market. The deal, valued at approximately ₹3,500–4,000 crore, could significantly reshape the health insurance landscape and unlock new growth opportunities for LIC.
• March 2025- Allianz SE entered into binding share purchase agreements with Bajaj Finserv Ltd. to sell its 26% stake in its successful non-life and life insurance joint ventures – Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company – to the Bajaj Group for a total consideration of EUR ~2.6bn. Allianz may receive the proceeds in several tranches.

REPORT COVERAGE

The global report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, deployment modes, types, and end users of the product. Besides this, it offers insights into the term insurance market trends and highlights key industry developments and market share analysis for key companies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years. 

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Report Scope & Segmentation