In 2023, life insurance reserves constituted 4.96% of total household financial assets in the US. From 2024 to 2028, forecasts indicate a steady decline: 4.88% in 2024, descending to 4.72% by 2028. This represents a 1.6% decrease from 2024 to 2025 and a 1.2% decline from 2025 to 2026, with a consistent downward trend. The compounded annual growth rate (CAGR) over these five years suggests an average annual reduction in life insurance reserves as a proportion of household financial assets.

Future trends to watch for include:

Shifts in demographics, including aging populations that may affect life insurance product attractiveness.
Changes in interest rates and economic conditions impacting investment returns on life insurance reserves.
Innovations in financial products that could provide alternative investment opportunities for households.