7

Life Insurance
People buy life insurance to protect their dependents
against financial hardship when the insured person,
the policyholder, dies. Many life insurance products
also allow policyholders to accumulate savings
that can be used in a time of financial need. Most
American families depend on life insurance to provide
this economic protection: 90 million American
families rely on life insurers’ products for financial andretirement security.

basis. Insurance on loans of 10 years’ or less duration
is classified as credit insurance in National Associationof Insurance Commissioners accounts; insurance on
longer loans is included in individual or group policy
data in this chapter. Life insurance policies offered byfraternal benefit societies are considered individual
insurance.

Americans purchased $3.3 trillion of new life
insurance coverage in 2021, a 1.3 percent decrease
from 2020. By the end of 2021, total life insurance
coverage in the United States was $21.2 trillion, an
increase of 3.7 percent from 2020 (Table 7.1).

Individual life is the most widely used form of life
insurance protection, accounting for 64 percent
of all life insurance in force in the United Statesat year-end 2021 (Table 7.1). Typically purchased
through life insurance agents, this insurance is issued
under individual policies with face amounts as low
as $10,000, although larger minimum amounts are
more typical in today’s market. While individual life isprincipally used for family protection, it also is widelyused for business purposes. A business may purchaselife insurance to protect against the economic loss
that would result from the death of the owner or a key
employee.

Three types of life insurance policies predominate
the market. Individual insurance is underwritten
separately for each individual who seeks insurance
protection. Group insurance is underwritten on agroup as a whole, such as the employees of a company
or the members of an organization. Credit insurance
guarantees payment of some debt, such as a mortgage
or other loan, in the event the insured person dies,and can be bought on either an individual or a group

INDIVIDUAL LIFE INSURANCE

Individual life insurance protection in the United89

Life InsuranceStates totaled $13.6 trillion at the end of 2021 and has
grown at an average annual rate of 2.1 percent since2011, when $11 trillion was in force (Table 7.1).
The average size of new individual life policies
purchased has increased from $162,230 in 2011
to $189,830 in 2021 (Figure 7.2). The number ofindividual policies purchased totaled 10.4 million in
2021 (Table 7.1).
Individual life policies offer two basic types ofprotection: covering a specified term, or permanently
covering one’s whole life.

Types of Policies
Term Insurance
Term insurance policies provide life insurance
coverage for a specified period, usually greater than
one year. Term policies provide no further benefits
when the term expires, and no buildup of cash value
occurs. If this insurance is not renewed at the end of
its term, coverage lapses and no payment would bemade to the beneficiary in the event of death.

There are four types of permanent life insurance
policies: traditional whole life, universal life (UL),
variable life (VL), and variable-universal life (VUL).
The annual premium for traditional whole life policies
remains constant throughout the life of the policy. In
earlier years, the premium is higher than the actual
cost of the insurance, but in later years it becomes
substantially lower than the actual cost of protection.
The excess amount of each premium in the early years
is held in reserve as the policy’s cash value. This cash
value grows over time from investment earnings andfuture premium payments, providing funds for the costof coverage as the insured grows older. If a policyholder
decides to give up the insurance protection, he or she
receives the cash value upon surrendering the policy,
less any outstanding policy loans. Universal life
allows varying premium payment amounts subject toa certain minimum and maximum. For variable life,
the death benefit and cash value vary subject to theperformance of a portfolio of investments chosen by
the policyholder. VUL combines the flexible premium
payment options of UL with the varied investment
options of VL.

Of new individual life policies purchased in 2021, 40
percent, or 4.1 million, were term insurance, totaling$1.4 trillion, or 71 percent, of the individual life face
amount issued (Table 7.2). The most popular formof term insurance is level term, which offers a fixed
premium.

In 2021, direct purchases of permanent life constituted
60 percent of U.S. individual life insurance policies
issued and 29 percent of the total face amount issued(Table 7.2).

Permanent Insurance

Insurance

Unlike term insurance, permanent life (or wholelife) insurance provides protection for as long as
the insured lives. Permanent life policies also have asavings component, building cash value that can help
families meet financial emergencies, pay for special
goals, or provide income for retirement years.

Traditional whole life and term insurance policies canbe purchased on a participating or nonparticipatingbasis. A participating policy allows the policyholder
to share in the insurance company’s surplus. With thistype of life insurance, a policyholder receives annual
dividends representing that portion of the premium
not needed by the company for death payments to

90 American Council of Life Insurers

Participating and Nonparticipating

beneficiaries, additions to reserves, or administrative
expenses. More than two-thirds of individual life
policies’ face amount purchased were nonparticipating
at $1.4 trillion (70%) in 2021 (Table 7.3).

Characteristics of Individual Policies

Some policies that lapse still have a cash value,
entitling the policyholder to some form of payment
under a cash surrender value non-forfeiture option. All
coverage under the policy terminates at the time of thesurrender.

Lapses and Surrenders

Disability Provisions

A policy lapses if its premium is not paid by theend of a specified time, often called the grace period.
Policyholders have different reasons for terminating
their policies, sometimes using cash values to address
financial emergencies or achieve long-term goals.
Rates of voluntary policy termination by policyholders
vary considerably among life insurers. Each company’srate depends on many factors, including the types ofpolicies written and the ratio of new policies to older
ones in force with the company

Besides the benefit payable upon death of the insured,many life insurance policies or policy riders provide
disability benefits to cover financial losses that
result from a sickness or injury. The most common
supplementary benefit is waiver of premium. Of
individual life policies in force with disability
provisions in 2021, 93 percent, or 33 million, allowed
the premium to be waived during disability. This
represents $4.5 trillion, or 99 percent, of the individuallife face amount in force with disability provisions(Table 7.6).

The voluntary termination rate of individual life
insurance policies reached 4.6 percent by 2021 (Table
7.4). Of the individual life policies that have been
voluntarily terminated, 19% were surrendered basedon face amount.
The life insurance business vigorously seeks tominimize the lapsing of policies. For example, agent
training focuses on realistic identification of clients’life insurance needs, and careful analysis of the useof family income for protection. Since the voluntarytermination rate is higher for policies on which loans
are outstanding, companies urge that loans be used
only in genuine financial emergencies, and that they
be repaid promptly.
Most insurers offer policyholders time after theirpolicy is delivered to consider whether to keep thepolicy. These companies will refund the premium infull if, within the prescribed time, the policyholder
decides not to keep his or her policy.

GROUP LIFE INSURANCEGroup life insurance is a contract between an insurancecompany and some group to insure all of the group’s
members, usually under term coverage. Common
examples are employer-provided life insurance andinsurance offered through unions and professional
associations. Employees or other group members
receive certificates denoting their participation in thegroup coverage. In 2021, group insurance represented
43 percent of all life insurance policies in force (Table
7.1).
Group purchases decreased 11.9 percent in 2021 to$1.3 trillion. At the end of 2021, group life insurance
provided $7.5 trillion of protection, a 0.6 percent
increase over a year earlier (Table 7.1).
Group insurance contracts can provide benefits
beyond term insurance. Employees often can retain
91 Life Insurance

coverage after retirement by paying premiums directly
to the insurer. Many policies also offer survivor
benefits, usually continuing monthly payments to the
spouse of an employee who dies before retirement;
payments may extend for life or to the age at whichSocial Security retirement payments become available,
but cease on remarriage. Contingent benefits todependent children in the event of a spouse’s death
are available as well. The initial value of these survivor
benefits can range from three to 10 times an employee’s
annual salary.
As with individual life policies, group policies
can be purchased on either a participating or
nonparticipating basis. Most group life policies arenonparticipating—95 percent of those purchased in
2021, at $1.2 trillion (Table 7.3).
The voluntary termination rate of group life insurance
policies increased to 6.2 percent from 5.7 percent a
year earlier. The voluntary lapses in 2021 increased to
6.2 percent from 5.6 percent in 2020 (Table 7.4).
Group policies also provide disability benefits. Of
group life policies in force with disability provisions in
2021, 90 percent, or 95 million, provided for waiver ofpremium. This represents $5.5 trillion, or 84 percent,of the group life face amount in force with disability
provisions (Table 7.6).

CREDIT LIFE INSURANCE
Credit life insurance pays the balance on loans of
10 years’ or less duration if the borrower dies before
repaying the amount due. At year-end 2021, $95
billion of credit life insurance was in force, down 1.8
percent from the previous year (Table 7.1).
Credit life, commonly part of consumer credit
92 American Council of Life Insurers

contracts, is term insurance, generally decreasing inamount as a loan is repaid. It protects the borrower’s
family, as well as the lender, against unpaid debt
that may be left at death. Life insurers issue credit
insurance through lenders such as banks, financecompanies, credit unions, and retailers, who in turnmake arrangements with borrowers.
As with other life policies, credit policies can bepurchased on either a participating or nonparticipatingbasis. Of credit life policies purchased in 2021, 98
percent, or $46 billion, were nonparticipating (Table
7.3).

POLICY CLAIMS RESISTED ORCOMPROMISED
From time to time, life insurers find it necessary
to delay or deny payment of claims due to material
misrepresentation, suicide within the contestable
period, or no proof of death, among other reasons.
In 2021, $301 million in new claims along with
$631 million in other claims were in dispute. Of thisamount, $219 million was paid in 2021 and $363
million still resisted at the end of the year (Table 7.7).

Figure 7.1

Individual, Group, and Credit Life Insurance in Force in the United States (face amount)

Credit20

Group$ Trillions

Individual
15

10

5

0

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission. NAIC does not endorse any
analysis or conclusions based on use of its data.
Note: Data represent U.S. life insurers and, as of 2003, fraternal benefit societies.

93 Life Insurance

Figure 7.2

Average Face Amount of Individual Life Insurance Policies Purchased

200

175
157

$ Thousands

150

114

172

162

165

2011

2013

160

163

2015

2017

178

190

128

100

50

0

2001

2003

2005

2007

2009

2019

2021

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission. NAIC does not endorse any
analysis or conclusions based on use of its data.
Note: Data represent U.S. life insurers and, as of 2003, fraternal benefit societies.

94 American Council of Life Insurers

Table 7.1

Life Insurance in the United States
Life Insurance

Average annual percent change

2011

2020

2021

2011/2021

2020/2021

Individual1$1,672,514$1,853,914$1,974,418

1.7

6.5

Group

1,159,934

1,439,540

1,268,487

0.9

-11.9

Credit57,99941,073

46,860-2.1

14.1

2,890,447

3,334,528

3,289,765

1.3

-1.3

Individual

10,30910,088

10,4010.1

3.1

Group (certificates)

16,86725,34524,027

3.6-5.2

Credit12,143

7,639

11,271-0.7

47.5

39,32043,072

45,6991.5

6.1$10,993,501$12,849,985$13,568,826

2.1

5.6

Group

8,119,879

7,478,454

7,524,156

-0.8

0.6

Credit105,685

97,17095,433-1.0-1.8

19,219,065

20,425,609

21,188,415

1.0

3.7

Individual

150,702

136,737

137,167-0.9

0.3Group (certificates)

112,119

105,183

112,255

0.0

6.7

Credit23,49513,011

11,279

-7.1

-13.3

286,315254,931

260,701-0.9

2.3

PURCHASES
Face amount (millions)

Total

Policies (thousands)

Total

IN FORCE
Face amount (millions)Individual

Total

Policies (thousands)

Total

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies. Data represent direct business, except for face amount in force which is net of reinsurance.
1
Policies issued by fraternal benefits societies are considered individual business.

95 Life InsuranceTable 7.2

Individual Life Insurance Purchases in the United States, by Plan Type, 2021

Policies in thousands/Amounts in millions
Policies

Percent

Face amount

Percent

98

0.9$1,540

0.1

4,022

38.7

1,308,789

66.3

Decreasing other term

NA

NA

3,577

0.2

Level other term2

NANA

83,652

4.2

Term additions

NA

NA

3,336

0.2

Total

4,119

39.6

1,400,895

71.0

Whole life and endowment

6,281

60.4

573,52229.0

Aggregate total

10,401100.0

1,974,418

100.0

Term insurance
Decreasing
Level
1

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies.
NA: Not available.
1
Includes decreasing term insurance on spouses and children under family policies.
2
Includes level term insurance on spouses and children under family policies.
Table 7.3

Life Insurance Purchases, by Participating Status
IndividualGroup

CreditFaceamount(millions)FaceamountPercent (millions)FaceamountPercent (millions)$1,241,499

74.2 $1,104,112

95.2$48,006

431,01525.8

55,822

4.8

1,672,514

100.0

1,159,934

1,308,923

70.6

544,992

Total

Face
amountPercent (millions)

Percent

82.8 $2,393,617

82.8

9,993

17.2

496,830

17.2

100.0

57,999100.0

2,890,447

100.0

1,389,895

96.6

40,38598.3

2,739,202

82.1

29.4

49,646

3.4

689

1.7

595,32617.9

1,853,914

100.0

1,439,540

100.0

41,073100.0

3,334,528

100.0

1,374,995

69.6

1,204,887

95.0

46,14398.5

2,626,025

79.8

599,424

30.4

63,599

5.0

717

1.5

663,740

20.2

1,974,418

100.0

1,268,487

100.0

46,860100.03,289,765

100.0

2011
Nonparticipating
Participating
Total

2020
Nonparticipating
Participating
Total

2021
Nonparticipating
Participating
Total

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers, and fraternal benefit
societies. 																96 American Council of Life Insurers

Table 7.4

Voluntary Termination Rates for Life Insurance Policies, Calculated by Face Amount (percent)
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Individual

4.8

4.7

4.6

4.3

4.4

4.3

4.5

4.7

4.4

4.1

3.7

Group

4.6

5.6

6.4

5.5

5.9

6.1

5.9

5.0

5.8

5.6

6.2

Credit

6.8

7.4

7.5

8.5

8.0

6.8

6.6

5.8

5.3

4.6

5.4

Individual

1.2

1.2

1.0

1.0

1.0

1.0

1.1

1.1

1.1

0.9

0.9

Group

0.3

0.6

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

Credit

7.3

8.2

9.7

14.6

9.6

7.2

7.1

7.2

8.6

6.8

6.0

Individual

6.1

5.9

5.7

5.3

5.4

5.2

5.7

5.7

5.5

5.0

4.6

Group

4.9

6.2

6.5

5.6

5.9

6.2

6.1

5.1

5.9

5.7

6.2

Credit

14.1

15.6

17.1

23.1

17.6

14.0

13.6

13.0

13.9

11.4

11.4

Lapse rate

Surrender rate

Combined
termination rate

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies.

Table 7.5

Voluntary Termination Rates for Life Insurance Policies, Calculated by Number of Policies (percent)
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Individual

4.9

4.7

4.0

5.1

4.6

5.0

5.3

5.6

5.8

5.7

5.0

Group

5.9

5.9

8.4

7.2

6.3

5.7

5.7

4.7

5.9

4.8

4.5

Credit

7.9

7.8

8.1

9.3

7.1

5.6

5.2

5.0

4.7

4.4

4.5

Individual

1.1

1.1

1.0

1.1

1.0

1.0

1.1

1.1

1.1

1.0

1.0

Group

0.2

0.6

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

Credit

10.7

11.9

12.2

13.6

10.3

8.3

9.1

8.4

12.6

6.7

7.0

Individual

6.1

5.8

5.0

6.2

5.6

6.0

6.4

6.7

6.9

6.7

5.9

Group

6.0

6.4

8.5

7.3

6.4

5.8

5.7

4.7

6.0

4.8

4.5

Credit

18.6

19.7

20.3

22.9

17.4

13.9

14.3

13.4

17.2

11.1

11.5

Lapse rate

Surrender rate

Combined
termination rate

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies.												97 Life InsuranceTable 7.6

Life Insurance With Disability Provisions, 2021
Policies and certificates in thousands/Amounts in millions
Policies

Percent ofpolicies in force

Face amount

Percent ofamount in force

Waiver of premium

32,65623.8$4,477,081

33.0

Disability income

179

0.1

10,2590.1

Extended benefits

-

-

-

-

2,399

1.7

24,5180.2

35,23425.7

4,511,858

33.3

Waiver of premium

94,88984.5

5,462,325

72.6

Disability income

1,551

1.4

106,529

1.4

Extended benefits

2,807

2.5

186,922

2.5

Other

5,861

5.2

773,433

10.3

105,108

93.6

6,529,208

86.8

Waiver of premium

320

2.8

90

0.1

Disability income

19

0.2

62

0.1

Extended benefits

6

0.1

95

0.1

344

3.1

247

0.3

Individual1

Other
Total

Group

2

Total

Credit3

Total

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies.				
1
Policies in force totaled 137 million, with a face amount of $13.6 trillion.				
2
Certificates in force totaled 112 million, with a face amount of $7.5 trillion.				
3
Policies in force totaled 11 million, with a face amount of $95 billion.

98 American Council of Life Insurers

Table 7.7

New Policy Claims Resisted or Compromised (thousands)
2011

2020

Face

2021

Face

Face

amountPercent

amountPercent

amountPercent

New claims in dispute$307,078

23.1$372,24338.0$300,777

32.3

All other claims in dispute

1,025,116

76.9

607,652

62.0

630,575

67.7

Total claims in dispute

1,332,195

100.0

979,895

100.0

931,351

100.0

Amount paid for new claims

28,04413.2

177,22155.3

78,42635.8

Amount paid for claims previously
resisted

184,358

86.8

143,30544.7

140,875

64.2

Total amount paid

212,402

100.0

320,526100.0

219,301

100.0

Amount resisted at year’s end1

443,641

310,771362,609

Source: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data. Data represent U.S. life insurers and fraternal benefit
societies.					1Not equal to subtracting total amount paid from total claims in dispute. The amount paid for claims disposed of usually varies from theamount claimed.					Table 7.8

Life Insurance Purchases, by Year
Policies and certificates in thousands/Amounts in millions
Individual
Year

Group

Policies Face amount

Certificates

Total

Face amount Policies/Certificates

Face amount1940

17,872$10,039285$691

18,157$10,730

1945

16,212

13,289681

1,265

16,893

14,554

1950

20,20322,728

2,631

6,068

22,834

28,796

1955

21,92837,1692,217

11,258 *24,14548,427

1960

21,021

59,763

3,734

14,64524,75574,4081965

20,42990,781

7,007

51,385 +27,436142,166 +1970

18,550129,432

5,219

63,690 +23,769193,122 +1975

18,946

194,732

8,146

95,190 +27,092289,922 +1980

17,628389,184

11,379183,418

29,007

572,6021985

17,637

911,666

16,243

319,503 *33,8801,231,169

1986

17,116

934,010

17,507374,741 +

34,623

1,308,751 +

1987

16,455986,984

16,698365,529

33,153

1,352,513

1988

15,796

996,006

15,793410,848

31,5891,406,854

1989

14,8501,020,971

15,110420,707

29,9601,441,678

1990

14,1991,069,880

14,592459,271

28,791

1,529,151

1991

13,583

1,041,706

16,230573,953 +

29,813

1,615,659 +**99 Life InsuranceTable 7.8, continued

Life Insurance Purchases, by Year, continued
Policies and certificates in thousands/Amounts in millions
Individual
Year

Group

Policies Face amount

Certificates

Total

Face amount

Policies/Certificates

Face amount

1992

13,452$1,048,357

14,930$440,143

28,382$1,488,500

1993

13,664

1,101,476

17,574

576,823

31,238

1,678,299

1994

13,835

1,057,233

18,390560,232

32,225

1,617,465

1995

12,595

1,039,258

19,404

537,828

31,9991,577,086

1996

12,022

1,089,268

18,761

614,565

30,783

1,703,833

1997

11,734

1,203,681

19,973

688,589

31,707

1,892,270

1998

11,5591,324,671

20,332739,508

31,891

2,064,179

1999

11,673

1,399,848

26,912966,858

38,5842,366,706

2000

11,8201,593,907

21,537921,001

33,3572,514,908

2001

14,0591,600,471

26,036

1,172,080

40,0952,772,551

2002

14,692

1,752,941

24,0201,013,728

38,713

2,766,669

2003

13,821

1,772,673

21,946

1,050,318

35,7672,822,992

2004

12,581

1,846,384

25,872

1,101,599

38,453

2,947,983

2005

11,407

1,796,384

23,112

1,039,878

34,5192,836,262

2006

10,9081,813,100

18,3781,022,080

29,287

2,835,180

2007

10,826

1,890,989

19,962

1,102,654

30,7882,993,643

2008

10,207

1,869,554

18,392

1,073,273

28,5992,942,827

2009

10,1391,744,357

19,051

1,155,824

29,1902,900,181

2010

10,123

1,673,216

18,4981,135,354

28,621

2,808,570

2011

10,3091,672,514

16,867

1,159,934

27,177

2,832,448

2012

10,306

1,679,314

16,757

1,120,625

27,0632,799,939

2013

9,929

1,640,202

15,336

1,138,686

25,264

2,778,888

2014

9,440

1,590,181

17,707

1,168,416

27,1472,758,596

2015

10,305

1,647,292

18,0101,229,275

28,3152,876,567

2016

11,005

1,684,585

16,5181,189,673

27,5232,874,257

2017

10,478

1,711,545

17,5571,315,651

28,035

3,027,196

2018

10,2891,727,874

17,4591,244,329

27,7482,972,203

2019

10,1181,802,511

21,2381,239,463

31,356

3,041,974

2020

10,0881,853,914

25,345

1,439,540

35,433

3,293,455

2021

10,401

1,974,418

24,027

1,268,487

34,4283,242,905

Sources: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission; LIMRA International.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data; Data represent direct business and exclude revivals, increases, dividend
additions, and reinsurance acquired. 1940-73 data exclude credit life insurance. Beginning with 1974, data include long-term credit insurance (life insurance onloans of more than 10 years’ duration). Data represent U.S. life insurers and, as of 2003, fraternal benefit societies.
*Includes Federal Employees’ Group Life Insurance of $1.9 billion in 1955, $84.4 billion in 1981, and $10.8 billion in 1985.
+Includes Servicemen’s Group Life Insurance of $27.8 billion in 1965, $17.1 billion in 1970, $1.7 billion in 1975, $45.6 billion in 1981, $51 billion in 1986, and$166.7 billion in 1991.		
						

100 American Council of Life Insurers

Table 7.9Life Insurance in Force in the United States, by Year (millions)Individual

Group

Face
amount Certificates

CreditTotal

FaceamountPolicies1

--

--

--

--

14

$7,573

11,863

--

--

--

--

22

11,86329

14,908

--

--

--

--

29

14,908

1915

41

20,929

*

$100

--

--

41

21,029

1920

64

38,966

2

1,570

*

$4

66

40,5401925

94

65,210

3

4,247

*

18

97

69,475

1930

118

96,539

6

9,801

*

73

124

106,413

1935

114

88,155

6

10,208

1

101

121

98,464

1940

122

100,2129

14,938

3

380

134

115,530

1945

149

129,225

12

22,172

2

365

163

151,762

1950

172

182,53119

47,793

11

3,844

202

234,168

1955

192

256,49432

101,345

28

14,493

252

372,332

1960

195

381,44444

175,903

43

29,101

282

586,448

1965

196

539,45661

308,078

63

53,020320

900,554

1970

197

773,37480

551,357

78

77,392355

1,402,123

1975

204

1,122,844

96904,69580

112,032380

2,139,571

1980

206

1,796,468

118

1,579,355

78

165,215402

3,541,038

1985

186

3,275,539

130

2,561,595

70

215,973386

6,053,107

1990

177

5,391,053

141

3,753,506

71

248,038389

9,392,597

1991

170

5,700,252

141

4,057,606

64

228,478375

9,986,336

1992

168

5,962,783

142

4,240,919

56

202,090366

10,405,792

1993

169

6,448,885

142

4,456,338

52

199,518

363

11,104,741

1994

169

6,448,758

145

4,443,179

52

189,398366

11,081,335

1995

166

6,890,386

147

4,604,85657

201,083

370

11,696,325

1996

166

7,425,746

139

5,067,804

50

210,746355

12,704,296

1997

162

7,872,561

142

5,279,042

47

212,255351

13,363,858

1998

160

8,523,258

152

5,735,273

46

212,917359

14,471,448

1999

162

9,172,397

159

6,110,218

46

213,453367

15,496,069

2000

163

9,376,370

156

6,376,12750

200,770369

15,953,267

2001

166

9,345,723

163

6,765,074

48

178,851377

16,289,648

2002

169

9,311,729

164

6,876,075

42

158,534

375

16,346,338

2003

176

9,654,731

163

7,236,191

40

152,739379

17,043,661

2004

168

9,717,377

165

7,630,503

39

160,371373

17,508,252

2005

166

9,969,899

167

8,263,019

40

165,605373

18,398,523

2006

161

10,056,501

177

8,905,646

37

150,289375

19,112,436

Year

Policies

1900

14$7,573

1905

22

1910

Face
Policies/amount CertificatesFaceamount101 Life InsuranceTable 7.9, continued

Life Insurance in Force in the United States, by Year (millions), continued
Individual
Year

Policies

Group

Face
amount Certificates

CreditFaceamountPolicies1

Total
Face
Policies/amount CertificatesFaceamount2007

158 $10,231,765

180$9,157,919

36$149,536

374 $19,539,219

2008

156

10,254,379

148

8,717,453

31

148,443335

19,120,276

2009

153

10,324,455

113

7,688,328

25

125,512291

18,138,295

2010

152

10,483,516

109

7,830,631

23

111,805284

18,425,952

2011

151

10,993,501

112

8,119,879

23

105,685286

19,219,065

2012

146

11,215,136

106

8,011,839

19

93,940272

19,320,916

2013

144

11,365,441

114

8,214,718

17

81,359275

19,661,518

2014

143

11,825,927

120

8,208,725

15

79,955278

20,114,607

2015

142

12,342,152

123

8,360,705

16

76,133281

20,778,990

2016

142

11,991,547

133

8,245,991

15

78,117291

20,315,655

2017

142

11,927,253

133

8,410,652

14

77,787289

20,415,692

2018

138

12,120,445

115

7,366,765

14

83,534267

19,570,744

2019

137

12,388,298

108

7,358,413

13

87,346259

19,834,056

2020

137

12,849,985

105

7,478,454

13

97,170255

20,425,609

2021

137

13,568,826

112

7,524,156

11

95,433261

21,188,415

Sources: ACLI tabulations of National Association of Insurance Commissioners (NAIC) data, used by permission; Spectator Year Book.
Notes: NAIC does not endorse any analysis or conclusions based on use of its data; Data represent direct business for policies/certificates andnet business for face amounts. Beginning in 1959, data include Alaska and Hawaii. 1994-97 data for individual amount and group certificateswere revised. Individual and group categories include credit life insurance on loans of more than 10 years’ duration; credit category is limited
to life insurance on loans of 10 years’ or less duration. Totals represent all life insurance (net of reinsurance) on residents of the United States,
whether issued by U.S. or foreign companies. Data represent U.S. life insurers and, as of 2003, fraternal benefit societies.
*Fewer than 500,000 policies/certificates.								1Includes group credit certificates.								102 American Council of Life Insurers