Although Croatia, in financial terms, in terms of financial market development, lags far behind compared to EU member states, there is still potential and need for life insurance. The life insurance market varies greatly from country to country. These differences are most noticeable between developed and underdeveloped countries and developing countries. Therefore, the market is not developed either, it is still developing. Although this difference is quite large and noticeable today, it is believed that it could be reduced over time, and that emerging markets could keep pace with Western European markets. In recent years, the problem of social inequality has been an important topic in the EU. The economic crisis has strongly affected Europe, reversed long-term trends in the convergence of living standards and significantly burdened social protection systems. As a result, inequality has increased in almost all Member States and concerns have been raised about sustainable growth and social cohesion. Two key dimensions of inequality relate to income inequality and unequal opportunities. Preventing and tackling inequalities depends to a large extent on the action and reforms of the Member States. Liberalization and deregulation have reduced inequalities among countries, but have resulted in unequal distribution within countries. Private insurance plays a major role in reducing social inequality. Namely, its advantage is manifested in the possibility of offering personalized insurance policies for each individual and easier adjustment to them.