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LIMRA: U.S. Individual Life Insurance Sales Post Strong Growth in the Second Quarter 2025; Third Highest Quarter on Record

9/11/2025

Record-high indexed universal life sales drive overall market gains

 

WINDSOR, Conn., Sept. 11, 2025 — Total new annualized premium increased 13% to $4.5 billion in the second quarter, according to LIMRA’s retail life insurance sales survey results, which represent 80% of the U.S. market. The number of policies sold rose 7% in the second quarter, which is the highest growth rate recorded in LIMRA’s quarterly survey since 1983.

In the first six months of 2025, new annualized premium surpassed $8.4 billion, up 11% over the prior year. Policy count grew 4% year to date (YTD).

“Indexed universal life sales remain a driving force in the U.S. life insurance market. IUL's sales success over the past 10 years is due to more simplified or competitive solutions, expanded distribution, and greater demand from consumers, who seek investment protection in a volatile equity market environment,” noted Sean Grindall, senior vice president and head of Life & Annuities, LIMRA and LOMA. “Although we had significant policy sales growth in the second quarter, our research shows there are 100 million Americans who live with a life insurance coverage gap. September is Life Insurance Awareness Month, an opportunity for the industry to help educate consumers about the many ways life insurance can help protect their financial futures and offer them peace of mind.”

Indexed Universal Life
Indexed universal life (IUL) products set quarterly and mid-year sales records. In the second quarter, IUL new premium leapt 31% to $1.2 billion. Each of the top ten IUL writers reported gains, citing continued demand in the high-face market, the introduction of new or enhanced products, implementation of new tools to help simplify and speed up sales processes, and the expansion or strengthening distributor relationships. Policy count rise 4% in the second quarter.  

YTD, IUL new premium totaled a record-high $2.1 billion, 21% higher than the prior year’s results. There were 5% more IUL policies sold in the first six months of 2025. IUL new premium represented 25% of the total U.S. life insurance market in the first six months of 2025.

Variable Universal Life
Variable universal life (VUL) new premium climbed 17% to $611 million in the second quarter. The number of policies sold increased 2% in the quarter. Half of the VUL writers reported positive growth, including seven of the top 10 carriers.

VUL new premium totaled $1.2 billion in the first months of 2025, up 27% year over year, and policy count improved 4%. In the first six months of 2025, VUL held 14% of the total U.S. individual life insurance market.

Whole Life
For the third consecutive quarter, whole life (WL) sales posted positive growth.  WL new premium totaled $1.6 billion in the second quarter, 6% above the prior year’s results. The number of WL policies sold rose 14% in the quarter, representing the strongest policy sales growth in 25 years.

“Final expense and other smaller-face whole life policies continue to drive overall WL sales growth in the first half of the year,” said Karen Terry, corporate vice president and head of LIMRA Insurance Research. “With economic uncertainty at the forefront of many consumers’ minds, we expect the WL sales to remain strong through 2025.”

YTD, WL new premium rose 4% to $3.1 billion, compared with the prior year’s results. Policy count grew 8% year over year. WL new premium represented 37% of the total life insurance market in the first half of 2025.

Term Life Insurance
Term life new premium totaled $792 million, 3% above the second quarter of 2024. Policy count increased 1% in the quarter. Several carriers attribute their growth to online distributors and expanded distribution.

In the first half of 2025, new premium exceeded $1.5 billion, up 1% year over year. The number of policies sold remained level with the same period in 2024. Term life new premium represented 18% of total sales YTD.

Fixed Universal Life
Fixed universal life (fixed UL) sales fell for the quarter and YTD. New fixed UL premium dropped 8% in the second quarter to $245 million. Policy count fell 7% from the second quarter of 2024 results.

In the first half of the year, fixed UL new premium was $483 million, 5% lower than the prior year’s results, and policy count contracted 8%. Fixed UL new premium held 6% of the U.S. life insurance market in the first six months of 2025.

For more details on the sales results, go to Life Insurance Sales Growth Rates (2025 Second Quarter) in LIMRA’s Fact Tank.

LIMRA’s Retail Individual Life Insurance Sales Survey represents 80% of the U.S. life insurance market. With more than 100 years of expertise, LIMRA conducts over 80 benchmark studies — producing nearly 500 reports annually — for our members and the industry as a whole. These studies provide trusted insights and a comprehensive understanding of market dynamics, trends, and behaviors.

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Media Contacts

Catherine Theroux

Director, Public Relations

Work Phone: (860) 285-7787

Mobile Phone: (703) 447-3257

ctheroux@limra.com

Bailey Stover

Public Relations/Social Media Specialist

Work Phone: (770) 984-3788

bstover@loma.org

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