The US individual disability insurance market recorded steady growth in 2025, with new sales increasing 2.7% to $491.8 million and in-force premiums reaching $5.6 billion. Growth was driven by strong demand for Non-Cancelable policies, Guaranteed Standard Issue products, and a rebound in Buy-Sell insurance, highlighting the continued importance of income protection for professionals and business owners.
Key Overview
- New disability insurance sales increased 2.7% to $491.8 million in 2025.
- In-force premium rose 1.9% to $5.6 billion.
- More than 285,000 new policies were issued, up 0.7% year over year.
- Total policies in force remained stable at approximately 3.0 million.
- Non-Cancelable policy sales grew 3.8%.
- Guaranteed Renewable sales declined 4.3%.
- Buy-Sell disability insurance sales surged 10.4%.
- Medical and high-income professional occupations accounted for 90% of new sales premium.
- Guaranteed Standard Issue products recorded another year of strong growth.
US Disability Insurance Market Posts Steady Growth
The US individual disability insurance market continued its growth trajectory in 2025, with new sales premium climbing 2.7% to $491.8 million, according to the latest annual market survey released by Gen Re, a Berkshire Hathaway-owned reinsurer.
The report, which collected data from 16 participating insurance carriers, provides one of the most comprehensive snapshots of the US disability insurance industry. It covers key product categories including Non-Cancelable (Non-Can), Guaranteed Renewable (GR), Buy-Sell, and Guaranteed Standard Issue (GSI) policies.
The survey represents approximately $5.6 billion in in-force premium, making it a significant indicator of overall market performance and consumer demand for disability income protection products.
The latest figures suggest that Americans continue to recognize the importance of protecting their income against illness or injury that could prevent them from working.
In-Force Premium Reaches $5.6 Billion
Beyond new sales growth, the disability insurance industry also recorded gains in existing business.
Total in-force premium reached $5.6 billion in 2025, representing a 1.9% increase compared to the previous year. This increase reflects the industry’s ability to retain policyholders while continuing to attract new customers.
Although the number of policies in force remained largely unchanged at approximately 3.0 million, declining only 0.2%, the increase in premium indicates that policy values and coverage levels continue to grow.
Stable policy retention remains a positive sign for insurers, particularly in a competitive market where maintaining long-term customer relationships is essential for profitability and sustainable growth.
New Policy Issuance Continues to Expand
The market also recorded growth in new policy issuance.
More than 285,000 new disability insurance policies were issued during 2025, representing a 0.7% increase from the previous year.
While the increase may appear modest, it demonstrates continued demand for disability coverage despite economic uncertainty and changing workforce dynamics.
The steady growth in new policies suggests that both individuals and businesses remain focused on financial protection strategies, particularly among professionals whose earning potential depends heavily on their ability to work.
The data also indicates that insurers continue to find opportunities to expand market penetration and educate consumers about the importance of income protection.
Non-Cancelable Products Lead Market Growth
One of the strongest performers during 2025 was the Non-Cancelable disability insurance segment.
New sales premium for Non-Cancelable policies increased by 3.8% year over year. These products are highly valued because they provide policyholders with guaranteed premiums and coverage terms that cannot be altered by insurers as long as premiums are paid.
Their popularity reflects consumer demand for certainty and long-term financial protection.
Non-Cancelable policies accounted for 62% of all new policies issued during the year and represented an even larger share of the existing market, making up 72% of all policies currently in force.
This dominance highlights the strong preference among policyholders for products offering long-term stability and predictable coverage.
Guaranteed Renewable Segment Faces Challenges
In contrast, the Guaranteed Renewable segment experienced weaker performance.
New sales premium in this category declined by 4.3% during 2025, while the number of newly issued Guaranteed Renewable policies fell by 3.9%.
Although these products still provide valuable disability protection, they allow insurers greater flexibility in adjusting premiums under certain circumstances, making them less attractive to some consumers compared to Non-Cancelable policies.
Despite the decline, Guaranteed Renewable policies remain a significant component of the overall disability insurance market, accounting for 38% of new policies sold and 27% of policies currently in force.
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Buy-Sell Insurance Rebounds Strongly
The Buy-Sell disability insurance segment delivered one of the strongest growth performances in the market.
New sales premium increased by 10.4% in 2025, marking a significant turnaround from the 23.9% decline recorded in 2024.
Buy-Sell disability insurance is designed primarily for business owners and helps facilitate ownership transitions if a partner or shareholder becomes disabled.
The rebound suggests renewed confidence among business owners and increased interest in succession planning and business continuity strategies.
Although Buy-Sell products represent a relatively small portion of the overall market, generating approximately $2.3 million in new sales premium, their strong growth rate demonstrates increasing demand within the business community.
Medical and Professional Occupations Dominate Demand
The survey reveals that disability insurance demand remains heavily concentrated among medical professionals and high-income occupations.
Medical professionals accounted for 44% of new sales premium during 2025, while individuals classified as 4A and Above occupations contributed an additional 46%.
Combined, these two groups represented 90% of all new disability insurance premiums generated during the year.
For policies currently in force, medical professionals accounted for 50% of total premium, while 4A and Above occupations represented 39%.
These figures highlight the industry’s continued focus on professionals whose incomes are highly dependent on their ability to work and whose financial losses from disability could be substantial.
Guaranteed Standard Issue Continues Strong Momentum
Another notable trend highlighted in the report was the continued growth of the Guaranteed Standard Issue market.
GSI products recorded another strong year, with both premium volume and the number of policies sold increasing compared to the previous year.
These products are often offered through employer-sponsored arrangements and provide simplified access to disability insurance without extensive medical underwriting.
Their growing popularity reflects broader efforts by employers and insurance providers to expand access to income protection benefits.
Why This Matters
Disability insurance remains one of the most overlooked components of financial planning despite the significant financial risks associated with losing the ability to work.
The continued growth in disability insurance sales indicates increasing awareness among consumers and businesses about the importance of income protection. Rising premiums and stable policy retention suggest that policyholders continue to see value in maintaining coverage even during periods of economic uncertainty.
The strong performance of Non-Cancelable and Guaranteed Standard Issue products demonstrates a growing preference for stability, predictability, and simplified access to coverage. Meanwhile, the rebound in Buy-Sell insurance points to increased attention among business owners toward succession planning and operational resilience.
For insurers, the results signal a healthy and expanding market with opportunities for continued growth. For consumers, the data serves as a reminder that protecting future earning potential is just as important as protecting physical assets or investment portfolios.
As economic conditions evolve and workforce dynamics continue to change, disability insurance is likely to remain a critical financial protection tool for professionals, business owners, and families across the United States.
Sources: ReInsurance Business, Business Wire, Gen Re
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