US individual life insurance new annualized premium rose 8% year over year to $3.94 billion in the first quarter of 2025, according to data from LIMRA’s US Life Insurance Sales Survey. The quarterly survey accounts for 80% of the US life insurance market.
The number of policies sold increased 1% compared to the same period in 2024.
LIMRA reported that total new annualized premium for U.S. individual life insurance reached $16.2 billion in 2024, marking the fourth consecutive year of record-high premium.
Despite this increase in premium volume, the number of policies sold in 2024 remained flat compared to 2023.
John Carroll (pictured above), senior vice president and head of life and annuities at LIMRA and LOMA, said retail life insurance premium growth was driven by indexed and variable universal life product sales.
“Amid the increased availability of capital through private equity investment and reinsurance, coupled with advanced technologies and product innovation, LIMRA predicts continued growth for the life insurance industry in 2025,” Carroll said.
Sales of indexed universal life (IUL) products grew 11% in the first quarter to $959 million. About 75% of IUL carriers reported growth, with half experiencing double-digit increases. The number of IUL policies sold rose 7% year over year, and most carriers posted gains. IUL premiums made up 24% of total new annualized premium for the quarter.
Karen Terry, corporate vice president and head of LIMRA Insurance Product Research, said the carriers that reported the strongest sales growth pointed to demand for high face amount solutions and success in the middle market, supported by new or enhanced products, streamlined sales processes, and expanded distribution.
“Although our research shows consumers’ concerns about the economy has spiked in recent months, LIMRA is forecasting IUL sales to experience moderate growth in 2025,” Terry said.
Variable universal life (VUL) new premium grew 41% year over year to $533 million in the first quarter. Approximately 70% of VUL carriers reported double- or triple-digit sales growth. The number of VUL policies sold increased 6% from the first quarter of 2024. VUL premiums represented 14% of the US life insurance market’s total in the first quarter.
Whole life new premium reached $1.48 billion in the first quarter, slightly higher than the same period in 2024. The number of whole life policies sold rose 2%, supported by an increase in final expense and small policy sales. Whole life accounted for 37% of total new annualized premium sold during the quarter.
Term life new premium declined 1% in the first quarter to $738 million, with over half of carriers reporting a decrease. Policy count fell 2% year over year. Term life made up 19% of the U.S. individual life insurance market in the first quarter.
“The very consumers who are most affected by heightened inflation and increased economic uncertainty – often middle-income and younger adults – are the target market for term products,” Terry said. “Historically, weaker economic conditions and recessions often depress sales of these products.”
Fixed universal life (fixed UL) new premium dropped 4% to $235 million, marking the lowest quarterly premium collected for this product line since the third quarter of 2023.
While accumulation-focused products and fixed hybrid life/long-term care insurance products posted gains, overall fixed UL premium fell due to declines in current assumption and lifetime guarantee product sales.
The number of fixed UL policies sold declined 13% compared to the first quarter of 2024. Fixed UL premiums accounted for 6% of the total new annualized premium in the first quarter.
In the broader market context, consumer behavior continues to be shaped by long-standing impacts of the COVID-19 pandemic.
LIMRA research indicates that the pandemic heightened awareness of the importance of life insurance coverage, leading to significant growth rates in policy purchases in 2021 not seen in over 40 years. Although growth has since moderated, awareness persists, influencing ongoing demand.
LIMRA also projects that life insurance premiums will reach $15.9 billion by the end of 2025, building on the record levels set in previous years. This anticipated growth is expected to be supported by a combination of strong equity markets and the continued evolution of product offerings.
Despite the gains, a large portion of the US population remains without sufficient coverage. According to a barometer study by LIMRA, about 40% of Americans – equivalent to 100 million people – are uninsured or underinsured.
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