LIMRA: Individual life insurance new premium sets 2025 record
Total new annualized premium increased 10% year over year to $17.5 billion in 2025, according to preliminary results from LIMRA’s individual life insurance sales survey. Individual life insurance new premium has set records for four of the past five years, including 2025. The number of policies sold rose 7% for the year. In the fourth quarter of 2025, new annualized premium totaled $4.9 billion, up 6% over the prior year. Policy count rose 9% in the fourth quarter.
“It was a remarkable year for individual life insurance. In addition to the favorable economic conditions, advances in technology have improved underwriting automation, digital applications, marketing and lead generation, making the buying process faster and more accessible. These improvements benefit both financial professionals and consumers, reducing friction and expanding distribution reach,” said Sean Grindall, senior vice president and chief member relations and solutions officer, LIMRA and LOMA. “LIMRA expects economic conditions to weaken in 2026, resulting in overall life insurance new annualized premium to grow between 2% and 6% in 2026. This is slightly above the historical average of 3.1% but well below the double-digit surge of 2025.”
Indexed universal life
Indexed universal life (IUL) set quarterly and annual sales records. In the fourth quarter, IUL new annualized premium was $1.3 billion, up 12% year over year. IUL policy count jumped 13% in the fourth quarter.
Whole life
Driven by final expense product sales, total whole life (WL) premium and policy count posted positive growth for the fifth consecutive quarter. WL new premium totaled $1.8 billion in the fourth quarter, up 9% year over year. The number of WL policies sold increased 13% in the quarter.
Variable universal life
Variable universal life (VUL) new premium totaled $770 million in the fourth quarter, down 3%, compared with the fourth quarter 2024 results. The number of policies sold grew 6% in the quarter.
Term life insurance
Term life new premium totaled $786 million, 5% above fourth quarter 2024 results. Policy count increased 5% in the quarter. Several carriers attribute their growth to rising consumer interest, underwriting automation and expanded distribution.
Fixed universal life
Fixed universal life (fixed UL) sales fell for the fifth consecutive quarter. New fixed UL premium contracted 3% in the fourth quarter to $259 million. Policy count fell 3% from the prior year results.