LIMRA: Individual life insurance new premium sets 2025 sales record

Total new annualized premium increased 10% year over year to $17.5 billion in 2025, according to preliminary results from LIMRA’s individual life insurance sales survey.

Individual life insurance new premium has set records for four of the past five years, including 2025. The number of policies sold rose 7% for the year.

In the fourth quarter of 2025, new annualized premium totaled $4.9 billion, up 6% over the prior year. Policy count rose 9% in the fourth quarter.

“It was a remarkable year for individual life insurance. In addition to the favorable economic conditions, advances in technology have improved underwriting automation, digital applications, marketing and lead generation, making the buying process faster and more accessible. These improvements benefit both financial professionals and consumers, reducing friction and expanding distribution reach,” said Sean Grindall, senior vice president and chief member relations and solutions officer, LIMRA and LOMA. “LIMRA expects economic conditions to weaken in 2026, resulting in overall life insurance new annualized premium to grow between 2% and 6% in 2026. This is slightly above the historical average of 3.1% but well below the double-digit surge of 2025.”

LIMRA provided a breakdown by product category:

Indexed universal life

Indexed universal life (IUL) set quarterly and annual sales records. In the fourth quarter, IUL new annualized premium was $1.3 billion, up 12% year over year. IUL policy count jumped 13% in the fourth quarter.

“IUL sales continue to be a bulwark for the individual life insurance sales market. Expanded distribution, enhanced products and a strong equity market all contributed to the growth for the quarter and in 2025,” said Karen Terry, corporate vice president and head of LIMRA Insurance Research. “Although the economy is slowing, LIMRA is forecasting double-digit IUL sales growth in 2026 as new products are introduced and distribution expands.”

For the year, IUL new premium totaled a record-high $4.5 billion, 17% higher than 2024 results. Policy sales increased 8% over 2024 levels. IUL new premium represented 25% of the total U.S. life insurance market in 2025.

Whole life

Driven by final expense product sales, total whole life (WL) premium and policy count posted positive growth for the fifth consecutive quarter. WL new premium totaled $1.8 billion in the fourth quarter, up 9% year over year. The number of WL policies sold increased 13% in the quarter.

“At a time of economic uncertainty, our research suggests consumers look for stable financial investments, like life insurance. A number of companies have expanded their final expense and smaller-face amount business to attract more middle-market consumers,” noted Terry. “While LIMRA expects sales of these products will continue to flourish in 2026. Mutual companies are seeing a shift to universal life products, dampening overall sales.”

In 2025, WL new premium climbed 7% to $6.4 billion. This sets a new sales record for whole life insurance products. Policy count grew 12% year over year. WL new premium represented 37% of the total life insurance market in 2025.

Variable universal life

Variable universal life (VUL) new premium totaled $770 million in the fourth quarter, down 3%, compared with the fourth quarter 2024 results. The number of policies sold grew 6% in the quarter.

For the year, VUL new premium totaled $2.6 billion, up 17% year over year. Policy count improved 5%. LIMRA is projecting VUL sales to moderate in 2026, in response to expected equity market volatility.

In 2025, VUL held 15% of the total U.S. individual life insurance market.

Term life insurance

Term life new premium totaled $786 million, 5% above fourth quarter 2024 results. Policy count increased 5% in the quarter. Several carriers attribute their growth to rising consumer interest, underwriting automation and expanded distribution.

In 2025, term new premium increased 3% year over year to $3.1 billion. The number of policies sold grew 2%, compared with 2024 results. LIMRA is forecasting term sales growth to remain relatively flat in 2026.

Term life new premium represented 17% of total sales in 2025.

Fixed universal life

Fixed universal life (fixed UL) sales fell for the fifth consecutive quarter. New fixed UL premium contracted 3% in the fourth quarter to $259 million. Policy count fell 3% from the prior year results.

For the year, fixed UL new premium was $985 million, down 4% year over year, and policy count dropped 6%. Fixed UL new premium held 6% of the U.S. life insurance market in 2025.

For more details on the sales results, go to Life Insurance Sales Growth Rates (Preliminary 2025 Fourth Quarter) in LIMRA’s Fact Tank. LIMRA’s Retail Individual Life Insurance Sales Survey represents 85% of the U.S. life insurance market.