The crisis in the life insurance industry has been developing over the decades. The ownership of life insurance in the US is steadily declining, particularly among the middle class. A study published by LIMRA, an industry trade group, in 2024 highlighted a significant decrease in life insurance ownership from 72% in 1976 to 51% in 2024.
The reasons behind this trend are many and complex. Jake Tamarkin, CEO of Everyday Life Insurance, explains, "One key reason fueling this trend is that it is simply more profitable for traditional agents to focus on wealthy clients. Consequently, the industry has moved away from serving those who need life insurance the most."
