Between 1965 and 2016, the population in America grew by approximately 50%. However, the total number of life insurance policies purchased remained about the same, according to the Financial Advisor in "The Decline of Life Insurance Is A Mystery."
The reason for the decline in the sales of life insurance, which is often used as a convenient tool to equalize the distribution of assets in an estate plan, is not clear.
One reason could be that fewer middle and lower income Americans can afford to purchase the policies or find them difficult to get because of increasing medical standards required by policy providers. As evidence for this explanation, the value of the policies that people are purchasing is increasing and wealthier Americans are purchasing even more policies.
The life insurance industry remains healthy. However, the reason for the decline remains a mystery.
Reference: Financial Advisor (Feb. 27, 2018) "The Decline of Life Insurance Is A Mystery."