This Just In ... Core Coverage Sees a Comeback in 2025
Workplace life insurance and disability benefits are experiencing a resurgence in 2025, with growth projections exceeding historical norms and signaling renewed interest in foundational coverage.
According to LIMRA’s latest workplace benefits sales survey, long-term disability insurance is projected to grow by 3.8%, surpassing its historical average of 2.7%. Short-term disability is expected to hit 4.0%, edging past its pre-pandemic benchmark of 3.8%. Meanwhile, workplace life insurance is forecasted to grow by 3%, nearly matching its historical average of 3.1%.
This uptick reflects a strategic shift among employers. With economic uncertainty still lingering and the labor market remaining tight, organizations are doubling down on core benefits to reinforce retention and employee trust. “We’re cautiously optimistic about workplace benefits in 2025,” said Anita Potter, assistant vice president at LIMRA. “Employers are focusing on employee-retention strategies, and 45% have added one or more benefits in the past two years”.
The renewed focus on disability and life insurance also aligns with broader trends in personalization and financial wellness. As benefits portfolios expand to include mental health, caregiving, and supplemental health products, core coverage remains a bedrock—especially for multigenerational workforces seeking stability and protection.
For benefits managers, this signals a clear opportunity: revisit the fundamentals, highlight the value of income protection, and ensure life and disability offerings are positioned not just as insurance—but as strategic tools for workforce resilience.
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