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Strong turnaround from 2025, when all three markets declined; short-term disability and hospital indemnity lead growth

WINDSOR, Conn., October 5, 2026 — U.S. workplace benefits sales rebounded in the first half of 2026, with new annualized premium for life insurance, disability insurance and supplemental health insurance each rising 7% from the prior year, according to LIMRA’s U.S. Workplace Benefits Sales Surveys. The results mark a sharp reversal from the first half of 2025, when all three markets posted year-over-year declines. Second quarter 2026 sales also grew from a year earlier: life insurance rose 5%, disability insurance 4% and supplemental health insurance 1%.

Key Findings: U.S. workplace benefits sales, first half of 2026

• Workplace life insurance new annualized premium totaled $2.9 billion, up 7% from the first half of 2025
• Workplace disability insurance new annualized premium totaled $2.6 billion, up 7%, led by a 13% increase in short-term disability.
• Workplace supplemental health insurance new annualized premium totaled $2.1 billion, up 7%, led by a 14% increase in hospital indemnity.
• In the second quarter of 2026 alone, new premium was $708 million for life (up 5%), $637 million for disability (up 4%) and $572 million for supplemental health (up 1%).

“Growth across life, disability and supplemental health reinforces the workplace as an important channel for financial protection,” said Grace Rafferty, head of LIMRA workplace benefits research. “What stands out is that momentum spans benefits designed for very different risks, reinforcing the importance of viewing workplace benefits as a portfolio that can address loss of earnings, gaps in medical expenses, and longer-term family protection.”

Workplace Life Insurance: Sales up 7% in the First Half of 2026

In the second quarter of 2026, total workplace life insurance new annualized premium was more than $708 million, up 5% from the second quarter of 2025. Term life premium rose 9%, while permanent life premium was virtually level with the prior year.

In the first half of 2026, workplace life insurance new annualized premium topped $2.9 billion, up 7% from the first half of 2025. Term and whole life sales showed solid momentum through the first six months of the year. More than half of participating carriers are ahead of their 2025 sales pace, and 11 of them grew by double digits.

Group life insurance sales grew 7% in the first half of 2026. Individual workplace life sales rose 12%. The top 10 carriers generated 68% of first-half new premium and collectively grew 9%, compared with 5% growth for all other carriers.

Workplace Disability Insurance: Short-Term Disability Drives 7% First-Half Growth

Total workplace disability insurance new annualized premium was approximately $637 million in the second quarter of 2026, a 4% increase from the prior year. Short-term disability (STD) new premium jumped 13%, while long-term disability (LTD) new premium fell 6%.

In the first half of 2026, total workplace disability new premium reached $2.6 billion, up 7% year-over-year. STD premium increased 13% and LTD premium rose 1%. Fully insured product sales increased 2%, while sales of Administrative Services Only (ASO) sales surged 67%.

Group disability sales rose 7% in the second quarter and 9% year-to-date. Individual disability sales declined 8% in the quarter and 11% year-to-date. The top 10 carriers accounted for 78% of total new disability premium in the first half of 2026, and their combined sales grew 15%.

Workplace Supplemental Health Insurance: Hospital Indemnity Leads 7% First-Half Growth

Workplace supplemental health new annualized premium totaled $572 million in the second quarter of 2026, up 1% from the prior year. Hospital indemnity premium grew 5%, and critical illness premium was level, while accident premium fell 5% and cancer premium dropped 10%.

Year-to-date, supplemental health new annualized premium exceeded $2.1 billion, up 7% from the first half of 2025. Every major product line posted gains except cancer insurance, which fell 7%. Hospital indemnity led growth with a 14% increase, followed by critical illness (up 6%) and accident (up 2%).

Twenty-seven of the 40 participating carriers reported first-half gains, and 19 of them posted double-digit increases. The top 10 carriers accounted for 65% of total new supplemental health premium and grew 6%, while the remaining carriers grew 10%. Group workplace products made up 85% of new premium and grew 10%. Individual worksite sales, 15% of new premium, declined 3%.

LIMRA’s workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent more than 90% of their respective annualized premium markets.

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.