LIMRA, the research and consulting organisation supporting the insurance and financial services sector, reported that US individual life insurance new annualised premium climbed past $17.5 billion in 2025, establishing a new industry high.
According to LIMRA’s individual life insurance sales survey, total new premium increased 10% compared with the previous year, marking the fourth record in five years tracked by LIMRA. LIMRA also found that the number of policies sold rose 7% over the same period.
LIMRA’s data shows that momentum carried into the final quarter of the year, with new annualised premium reaching $4.9 billion, up 6% year over year, while policy count grew 9%.
“It was an exceptional year for individual life insurance with indexed and variable universal life products posting double-digit premium growth,” commented Sean Grindall, Senior Vice President and Chief Member Relations and Solutions Officer, LIMRA and LOMA.
“LIMRA predicts more measured sales growth in 2026, as softening economic conditions impact the profitability of interest-sensitive and market-linked product lines. We expect 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.”
LIMRA reported that indexed universal life (IUL) was a major contributor to overall growth, setting both quarterly and annual records based on its analysis. In the fourth quarter, LIMRA recorded $1.3 billion in new annualised premium for IUL, representing a 12% increase, alongside a 13% rise in policy count.
“Broader distribution, enhanced products and a strong equity market all contributed to the IUL growth in the fourth quarter and in 2025,” added Karen Terry, Corporate Vice President and Head of LIMRA Insurance Research. “Despite a weaker economy, LIMRA is forecasting double-digit IUL sales growth in 2026, supported by the increased distribution reach as additional products become available.”
For the full year, LIMRA reported that IUL new premium reached a record $4.5 billion, up 17% from 2024, with policy sales increasing 8%. LIMRA’s findings indicate that IUL accounted for 25% of the total US life insurance market in 2025.
LIMRA also highlighted continued strength in whole life (WL) products, noting that growth was sustained for a fifth consecutive quarter, largely driven by demand for final expense offerings. LIMRA recorded fourth-quarter WL new premium at $1.8 billion, up 9%, with policy count increasing 13%.
“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,” noted Terry. “Typically, our data shows consumers are drawn to stable products, like whole life, when faced with economic instability. As a result of this and a continued increase in the final expense market.”
Across the full year, LIMRA reported that whole life new premium rose 7% to a record $6.4 billion, with policy count up 12%. According to LIMRA, whole life products represented 37% of the overall US life insurance market in 2025.
LIMRA’s data on variable universal life (VUL) showed mixed performance, with fourth-quarter new premium declining 3% to $770 million, even as policy count increased 6%. Over the full year, however, LIMRA recorded a 17% rise in VUL new premium to $2.6 billion, alongside a 5% increase in policy sales. LIMRA expects this segment to moderate in 2026 due to anticipated volatility in equity markets, noting that VUL represented 15% of the total market in 2025.
Term life insurance also posted gains in LIMRA’s analysis, with fourth-quarter new premium increasing 5% to $786 million and policy count rising by the same margin. LIMRA attributed this performance, based on carrier feedback, to stronger consumer demand, advances in underwriting automation, and broader distribution.
For the year, LIMRA reported term life new premium of $3.1 billion, up 3%, with policy sales increasing 2%, and projected relatively stable growth for 2026. LIMRA data shows term life accounted for 17% of total sales in 2025.
Finally, LIMRA reported continued declines in fixed universal life (fixed UL), with fourth-quarter new premium falling 3% to $259 million and policy count decreasing 4%. For the full year, LIMRA recorded fixed UL new premium at $984 million, down 4%, with policy count dropping 6%. According to LIMRA, fixed UL represented 6% of the US life insurance market in 2025.
