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Changing Family Structures Create New Coverage Needs

Author

Stephen Wood
Research Director, Markets Research
LIMRA and LOMA
swood@limra.com

October 2025

The United States is home to over 132 million households, according to the U.S. Census Bureau. There is a lot of diversity within these millions of households, and they may not depict the conventional family unit of the past.

Over recent decades, numerous fundamental shifts have influenced the structure of the American family. New social, demographic and cultural trends have emerged to shape existing family dynamics and give rise to many forms beyond the “typical” household. These point to the emergence of a new era in the nation — one with a more heterogeneous and complex population than ever.

These changes have meaningful implications for consumer needs and expectations with regard to the life insurance industry. To harness market opportunities and close coverage gaps, it is critical for insurers to understand and respond to these new realities. The 2025 Insurance Barometer Study shows 74 million Americans say they need life insurance (and 25 million say they need more coverage) — so now is the time to find innovative ways to reach the uninsured and underinsured.

In terms of evolving family structures, key populations to consider include those who have delayed typical milestones, single-parent families, nontraditional families, and LGBTQ+ households:

Delayed Milestones

Compared to the timeline for previous generations, Americans are choosing to postpone typical life events — such as getting married, having or adopting children, or buying a home. In fact, a Pew Research Center analysis cited in InsuranceNewsNet indicates many younger adults today are putting off these traditional milestones. For instance, while 63 percent of 25-year-olds were married in 1980, this figure dropped to just 22 percent in 2021.

Since this type of event often triggers interest in the protection life insurance provides, when they occur later and/or are less widespread in the population, the industry should pivot accordingly. In response to this shift, it will be important to offer policy options that make sense at older ages and continue to provide coverage for a longer time.

Single-Parent Families

Due to factors such as higher rates of divorce and separation, as well as a growing number of parents choosing not to marry, there is an increasing number of single-parent households in the United States. According to the U.S. Census Bureau, in 2022, there were nearly 11 million “one-parent family groups” with a child younger than 18. Notably, 80 percent of these households were led by a mother.

Given the primary involvement of women in single-parent households, it is important to consider the life insurance ownership levels of U.S. women overall. Recent LIMRA research points to a gender gap — where just 48 percent of women have coverage, compared to 54 percent of men. Overall, 43 percent of women believe they need (or need more) life insurance coverage.

Life insurance plays an essential role for this population due to the increased financial vulnerability of a household with a single earner who likely has fewer safety nets. Insurers seeking to engage this market will need to focus on affordable policies that will help parents (typically women) protect their children.

Nontraditional Families

In a broad sense, nontraditional family structures are becoming increasingly common across America. Blended families are one form to consider. Following remarriage, they can involve unique living arrangements with children from one or both prior relationships — as well as possibly new children. According to Pew Research Center, 15 percent of children live in a household with two parents who are remarried. In these cases, insurers should reflect this living situation in engagement efforts and emphasize policies that would protect all dependents.

Pew Research Center statistics also highlight trends in cohabiting households. Among those aged 25 to 49, 7 percent are cohabiting couples with no children, and an additional 5 percent are cohabiting and have children. This type of family structure presents a distinct need for coverage options that do not presume the adults are married. 

LGBTQ+ Households

LGBTQ+ households represent a significant opportunity for the industry to help improve their financial security. Today, over 9 percent of the nation identifies as part of the LGBTQ+ community, according to Gallup, and this proportion is increasing. At the same time, LIMRA research finds only 42 percent of LGBTQ+ adults have life insurance — a lower proportion than the general population (51 percent).

In addition, UCLA data indicate 18 percent of LGBTQ+ adults are parenting minors under age 18. For those raising young families, it is even more critical to provide effective coverage. To reach this market, carriers must think differently to create inclusive and flexible products that reflect their reality.

Moving Forward

How can the life industry anticipate and navigate the new needs of U.S. families? The market segments discussed here are just a sampling of those creating a multidimensional population with profound expressed coverage gaps — as well as possibly unconventional situations and concerns. While each group will benefit from a targeted approach, there are some general implications to consider:

  • Product development. Standard policy models may no longer effectively serve all markets. It is imperative for carriers to deeply understand the populations they wish to serve and build their product set accordingly. For instance, LIMRA research reveals growing interest in life/long-term care combination products, with Millennials most likely to view this option as appealing. An innovative approach to product design will involve options that offer flexibility and customization across family structures.

  • Clarity and education. It is a natural human impulse to avoid topics that seem too complex, overwhelming or difficult to understand. To reach a particular population and motivate action toward obtaining coverage, insurers first must address their perceived obstacles to purchase.

  • Simplification and affordability. Many households are living on a limited budget with competing financial priorities. They are only likely to respond to a product that seems affordable and to a process that is simple and streamlined. It is perhaps unfair to say that younger adults are “choosing” to delay families and home buying considering the current economic conditions. As an industry, we must be empathetic to these realities.

  • Engagement and messaging. Each family sees the world from a unique vantage point, shaped by its own dynamics and experiences. Communication from financial professionals and insurers’ marketing efforts must genuinely reflect an understanding of nontraditional family structures. Engagement also should occur through channels known to be preferred by the segment.

With these perspectives in mind, it is an exciting time to revisit the life insurance product — from policy design to outreach strategies — to ensure it resonates with all families.

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