LIMRA, a research and consulting organization that supports the insurance and financial services industry, reports that new annualized premiums for U.S. individual life insurance will climb to more than $17.5 billion in 2025, setting a new industry high.
According to LIMRA’s individual life insurance sales survey, total new premiums increased 10% from the previous year, setting a fourth record in the five years LIMRA has been tracking. LIMRA also found that the number of policies sold increased by 7% during the same period.
LIMRA data shows that this momentum continued into the last quarter of this year, with new annualized premiums reaching US$4.9 billion, a year-on-year increase of 6%, and the number of policies increased by 9%.
Sean Grindall, senior vice president and chief member relations and solutions officer for LIMRA and LOMA, commented: “It’s been an extraordinary year for individual life insurance, with double-digit premium growth for indexed universal life products.”
“LIMRA expects sales growth to be more solid in 2026 as softer economic conditions impact profitability across rate-sensitive and market-related product lines. We expect the most successful operators will be those that can expand their product portfolios to better manage increasing economic volatility and meet the growing needs of middle-income and mass affluent consumers.”
LIMRA reported that indexed universal life (IUL) was a major contributor to overall growth, setting quarterly and annual records, according to its analysis. In the fourth quarter, LIMRA’s IUL new annualized premiums were US$1.3 billion, an increase of 12%, and the number of policies increased by 13%.
“Broader distribution, enhanced products and strong equity markets all contributed to IUL growth in the fourth quarter and into 2025,” added Karen Terry, vice president and director of LIMRA Insurance Research. “Despite the soft economy, LIMRA expects double-digit IUL sales growth in 2026, driven by expanded distribution as more products become available.”
LIMRA reported that new IUL premiums for the year reached a record $4.5 billion, a 17% increase from 2024, and policy sales increased by 8%. LIMRA’s findings indicate that by 2025, IULs will account for 25% of the total U.S. life insurance market.
LIMRA also highlighted the continued strength of whole life (WL) products, noting its fifth consecutive quarter of growth, driven primarily by demand for final expense products. LIMRA’s new WL premiums in the fourth quarter reached US$1.8 billion, an increase of 9%, and the number of policies increased by 13%.
“LIMRA’s latest consumer sentiment survey found that half of U.S. adults are very worried about the economy, with lower-income consumers even more worried. In 2025, we will see many companies expand their final spend and small-ticket operations to attract more mid-market consumers,” Terry noted. “Typically, our data shows that when faced with economic instability, consumers are attracted to stable products, such as lifetime products. As a result, the end consumer market continues to grow.”
LIMRA reported that new premiums increased 7% for the year to a record $6.4 billion, and the number of policies increased 12%. According to LIMRA, whole life insurance products will account for 37% of the overall U.S. life insurance market by 2025.
LIMRA’s variable universal life (VUL) numbers were mixed, with new premiums falling 3% to $770 million in the fourth quarter despite a 6% increase in policy volume. However, LIMRA’s full-year VUL new premiums increased 17% to $2.6 billion, with policy sales up 5%. LIMRA expects the segment to slow down in 2026 due to expected volatility in the stock market, noting that VUL will account for 15% of the total market in 2025.
Term life insurance also saw growth, with new premiums rising 5% in the fourth quarter to $786 million, and the number of policies increasing by the same amount, LIMRA’s analysis shows. Based on carrier feedback, LIMRA attributed the performance to stronger consumer demand, advances in underwriting automation and broader distribution.
LIMRA reported that new term life insurance premiums this year were $3.1 billion, an increase of 3%, policy sales increased by 2%, and growth is expected to be relatively stable in 2026. LIMRA data shows that term life insurance will account for 17% of total sales in 2025.
Finally, LIMRA reported that fixed universal life insurance (fixed UL) continued to decline, with new premiums falling 3% to $259 million in the fourth quarter and the number of policies falling 4%. LIMRA’s full-year fixed UL new premiums were US$984 million, down 4%, and the number of policies fell 6%. According to LIMRA, fixed UL will account for 6% of the U.S. life insurance market by 2025.
The post U.S. life insurance premiums hit record high of $17.5 billion in 2025: LIMRA appeared first on ReinsuranceNe.ws.