This article defines the essence, role, and functions of life insurance. It examines the classification, forms, and types of insurance services within the personal insurance sector. The article highlights the current problems facing the life insurance market in Ukraine and discusses the regulatory and legal framework governing the activities of insurers, including licensing conditions and class divisions of insurance. A comparison is made between Ukraine's classification of insurance and that of European countries. Additionally, the article analyzes the dynamics of key indicators of Ukraine's life insurance market from 2021 to 2024, comparing these indicators to those of life insurance markets in European countries and the United States. The necessity of introducing innovative technologies and instruments into the insurance sector of the Ukrainian economy is also emphasized. It is noted that while the insurance sector in Ukraine offers a wide range of services that provide financial protection in the event of insured occurrences, public interest in these services is significantly lower than in European countries. This gap indicates a lack of information about insurance services and a distrust among Ukrainians towards insurance companies. Therefore, it is crucial to invest more resources in attracting both citizens and enterprises to utilize insurance services. This strategy will not only help align Ukraine with EU standards but also enhance the importance of its domestic insurance sector. To develop and expand Ukraine's insurance market, it is important to draw from the experiences of developed European countries. Increasing the financial capacity of insurance companies will grant access to new technologies and best practices, which in turn can improve service quality and the competitiveness of Ukrainian insurance companies. The author suggests several measures to tap into the potential of the life insurance market in Ukraine. These include digitalizing processes, introducing innovative insurance products, improving financial literacy among the population, transitioning to European standards, developing partnership programs in life insurance, and utilizing reinsurance operations. By incorporating international standards and technologies into the Ukrainian life insurance sector, Ukraine can significantly broaden its opportunities, enhance competitiveness, and modernize the industry.