Skip to content

LIMRA: U.S. Individual Life Insurance Sales Post Double-Digit Premium and Policy Sales Growth in the Third Quarter

12/3/2025

Middle- and lower-income household interest in final expense products drive double-digit whole life product sales

WINDSOR, Conn., Dec. 3, 2025 — Total new annualized premium increased 14% year over year to $4.3 billion in the third quarter, according to LIMRA’s individual life insurance sales results, which represent 80% of the U.S. market. The number of policies sold rose 10% in the third quarter.

In the first nine months of 2025, new annualized premium totaled $12.7 billion, up 12% over the prior year. Policy count rose 6% year to date (YTD). 

“It was another strong quarter for individual life insurance sales with whole life products driving overall policy sales growth. Interestingly, final expense sales were the determining factor of whole life growth, propelled by middle- and lower-income consumer demand,” said Sean Grindall, senior vice president and head of Life and Annuities, LIMRA and LOMA. “Overall, 2025 has been an extraordinary year with total premium growth expected to be in double-digits. The last time we witnessed this level of growth was in 2021 during the pandemic. Strong demand for accumulation products, the expansion of the simplified products and a robust final expense market spurred this year's performance.”

Whole Life

For the fourth consecutive quarter, whole life (WL) sales posted positive growth. WL new premium totaled $1.5 billion in the third quarter, 11% above prior year’s results. The number of WL policies sold surged 18% in the quarter, marking the biggest growth in since at least 1990.

YTD, WL new premium climbed 6% to $4.6 billion, compared with the prior year’s results. Policy count grew 11% year over year. WL new premium represented 36% of the total life insurance market in the first nine months of 2025.

Indexed Universal Life
In the third quarter, indexed universal life (IUL) new premium was just over $1 billion, up 16% year over year. The majority of IUL carriers reported sales growth in the quarter, including nine of the top 10 carriers. Expanded distribution, enhanced products and a strong equity market all contributed to the third quarter’s success. Policy count improved 8% in the third quarter.

“Over the past several quarters, IUL products have expanded to address two distinct markets: traditional products designed for affluent investors and simplified IUL products sold through distributors targeting middle-income customers,” said Karen Terry, corporate vice president and head of LIMRA Insurance Research. “Current economic conditions, including higher interest rates have made IUL cap and participation rates more attractive, while simplified products offer premium flexibility to customers looking for a permanent insurance product.”

YTD, IUL new premium totaled a record-high $3.2 billion, 19% higher than the prior year’s results. There were 6% more IUL policies sold in the first nine months of 2025. IUL new premium represented 25% of the total U.S. life insurance market in the first three quarters of 2025.

Variable Universal Life
Variable universal life (VUL) new premium surged 35% to $692 million in the third quarter, driving the premium growth for the quarter. The number of policies sold grew 4% in the quarter.

VUL new premium totaled $1.9 billion in the first months of 2025, up 30% year over year and policy count improved 4%. In the first three quarters of 2025, VUL held 15% of the total U.S. individual life insurance market.

Term Life Insurance
Term life new premium totaled $760 million, 5% above third 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 the first nine months of 2025, term new premium increased 2% year over year to $2.3 billion. The number of policies sold grew 1% over 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 fourth consecutive quarter. New fixed UL premium contracted 4% in the third quarter to $245 million. Policy count fell 4% from the third quarter 2024.

In the first nine months of the year, fixed UL new premium was $726 million, 5% below prior year’s results. YTD policy count dropped 7%. Fixed UL new premium held 6% of the U.S. life insurance market in the first nine months of 2025.

For more details on the sales results, go to Life Insurance Sales Growth Rates (2025 Third 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.

-end-

About LIMRA
Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 member organizations navigate change with confidence. Visit LIMRA at www.limra.com.

Did you accomplish the goal of your visit to our site?

Yes No