New annualized premium for US individual life insurance rose 16% year over year in Q3, reaching $4.3 billion, according to LIMRA's preliminary results covering roughly 80% of the market.
Meanwhile, the number of policies sold increased 10% in the quarter.
For the first nine months of 2025, new annualized premium totaled $12.8 billion, up 13% from the prior year, while policy count rose 6% year to date.
Whole life maintains strong momentum
Whole life (WL) products continued their upward trend, posting a 12% increase in new premium to $1.5 billion in Q3, with policy sales jumping 18%, the largest quarterly growth since at least 1990.
Half of WL carriers and most of the top 10 writers reported gains, driven primarily by final expense and smaller-face policies. Year to date, WL new premium reached $4.6 billion, representing 36% of the total individual life market.
Meanwhile, variable universal life (VUL) new premium surged 46% to $751 million in Q3, contributing significantly to overall market growth. Policy count rose 6% in the quarter.
While fewer than half of VUL carriers reported gains, the top eight carriers -- accounting for 90% of VUL premium -- drove the market. Year-to-date VUL premium climbed 35% to $1.9 billion, capturing 15% of the market.
Term and indexed universal life see moderate gains
Term life new premium increased 4% in Q3 to $754 million, with policy sales up 4%, supported by rising consumer demand, underwriting automation, and expanded distribution. Indexed universal life (IUL) posted new premium of just over $1 billion in Q3, an increase across nine of the top 10 writers, and policy count grew 8%. IUL new premium totaled a record $3.2 billion year to date, representing 25% of total market sales.
Fixed universal life (fixed UL) sales fell for the fourth consecutive quarter, with new premium down 2% to $249 million and policy count slipping 1%. YTD, fixed UL premium totaled $732 million, a 4% decline from 2024, holding 6% of the market.
LIMRA expects continued growth in life insurance sales through the end of 2025, though growth may moderate in coming years. The strong demand for WL, VUL, and IUL products highlights a shift toward policies that offer long-term guarantees, investment flexibility, and potential cash value accumulation, reflecting evolving consumer preferences amid economic uncertainty.
