U.S. Individual Life Insurance New Premium Tops $17.5 Billion To Set New Sales Record In 2025

Total new annualized premium exceeded $17.5 billion in 2025, up 10% year over year, according to LIMRA's individual life insurance sales survey.

Mar. 23, 2026 at 1:53am

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Total new annualized premium for individual life insurance exceeded $17.5 billion in 2025, up 10% from the previous year, according to a report from LIMRA. The number of policies sold also rose 7% for the year. Indexed universal life, whole life, and variable universal life products all saw double-digit premium growth, while fixed universal life sales declined for the fifth consecutive quarter.

Why it matters

The strong sales performance across multiple life insurance product lines indicates growing consumer demand for these financial protection products, even in the face of economic uncertainty. The industry's ability to adapt products and distribution to meet evolving consumer needs is a positive sign for the long-term viability of the individual life insurance market.

The details

Indexed universal life new premium was $4.5 billion in 2025, up 17% year over year. Whole life new premium grew 7% to $6.4 billion. Variable universal life new premium totaled $2.6 billion, up 17% year over year. Term life new premium increased 3% to $3.1 billion, while fixed universal life new premium fell 4% to $984 million.

  • In the fourth quarter of 2025, new annualized premium totaled $4.9 billion, up 6% over the prior year.
  • For the full year 2025, total new annualized premium exceeded $17.5 billion, up 10% year over year.

The players

LIMRA

A research and consulting organization that has served the life insurance industry since 1916, providing industry knowledge, insights, connections, and solutions to help member organizations navigate change.

Sean Grindall

Senior vice president and chief member relations and solutions officer at LIMRA and LOMA.

Karen Terry

Corporate vice president and head of LIMRA Insurance Research.

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What they’re saying

“It was an exceptional year for individual life insurance with indexed and variable universal life products posting double-digit premium growth...”

— Sean Grindall, Senior vice president and chief member relations and solutions officer

“Broader distribution, enhanced products and a strong equity market all contributed to the IUL growth in the fourth quarter and in 2025.”

— Karen Terry, Corporate vice president and head of LIMRA Insurance Research

“LIMRA's latest Consumer Sentiment survey finds half of U.S. adults are very worried about the economy and lower-income consumers registering higher concern. In 2025, we witnessed a number of companies expanded their final expense and smaller-face amount business to attract more middle-market consumers.”

— Karen Terry, Corporate vice president and head of LIMRA Insurance Research

What’s next

LIMRA is forecasting more measured sales growth in 2026, as softening economic conditions impact the profitability of interest-sensitive and market-linked product lines. The organization expects the most successful carriers will be those that broaden their product portfolios to better manage increasing economic volatility and meet the rising need of middle-income and mass-affluent consumers.

The takeaway

The strong performance across multiple life insurance product lines in 2025 demonstrates the industry's ability to adapt to evolving consumer needs and economic conditions. As the market faces potential headwinds in 2026, carriers that diversify their offerings and focus on serving middle-market and mass-affluent consumers will likely be best positioned for continued success.