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WINDSOR, Conn., Sept. 10, 2024 — In the second quarter 2024, term life insurance — a mainstay for younger and middle-income families — recorded its sixth consecutive quarter of growth in both premium and policy sales, according to LIMRA’s U.S. Life Insurance Sales Survey. 

Term new premium ticked up 1% in the second quarter to $776 million with 8 of the top 10 carriers posting premium gains. Policy count increased 1% in the quarter. Carriers credit term product growth to online platform improvements and expansion, as well as more competitive products or rates.

In the first six months of the year, term premium totaled $1.5 billion, up 2% from prior year. Policy sales increased 2% in the first half of the year. In the first six months of 2024, term new annualized premium market share held 20% of the total U.S. individual life insurance market.

“Term life premium is on pace to reach $3 billion in 2024, a new sales record for the product,” said John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “The need for life insurance continues to grow, with more than 100 million Americans — and more than half are younger and middle-income adults — acknowledging they live with a life insurance coverage gap. Term offers an affordable, easily accessible option for those who want to get coverage to protect their loved ones. LIMRA is forecasting term sales to continue to tick up slowly in 2024 and 2025.”

Total U.S. individual life insurance new annualized premium was $3.98 billion in the second quarter, level with prior year results. Policy count fell 1% in the second quarter.

Year to date (YTD), new premium totaled $7.7 billion, down 1% and the total number of policies sold dropped 1% with prior year’s results.

Whole Life
High interest rates continue to stifle whole life (WL) sales as buyers shift money away from high-face or short-pay WL sales or completely away from WL products to other products with the potential for a stronger return. WL new premium totaled $1.48 billion in the second quarter, down 7% from prior year’s results. The number of policy sales fell 5% in the quarter.

YTD, WL new premium fell 8% to $2.9 billion. Policy count dropped 6% in the first half of the year. Whole life insurance new premium held 38% of the total new annualized premium sold in the first half of the year.

“Whole life sales, which represent the largest proportion of the U.S. life insurance market, have struggled under a higher interest rate environment in the first half of 2024,” said Karen Terry, assistant vice president, head of LIMRA’s Insurance Product Research. “The Federal Reserve is anticipated to lower interest rates in the fall, which may relieve some of the stress on whole life sales growth in the second half of the year.”

Fixed Universal Life
For the fourth consecutive quarter, fixed universal life (fixed UL) new premium increased. In the second quarter, fixed UL new premium was $277 million, up 5% year over year. The rise in fixed UL premium was mainly driven by hybrid life/long term care product sales. The number of fixed UL policies sold fell 7% in the second quarter.

YTD, fixed UL premium was $532 million, 8% higher than prior year but policy count dropped 5%. Fixed UL premium represented 7% of the total new annualized premium in the first half of 2024.

Variable Universal Life
Variable universal life (VUL) new premium jumped 10% the second quarter to $530 million. Six in 10 VUL writers reported gains with most experiencing double-digit premium growth. In the second quarter, policy count improved 5% year over year.

In the first half of 2024, VUL premium was $928 million, increasing 3% compared with the same period of 2023. The number of policies sold was 5% higher than the first six months of 2023. VUL premium held 12% of the total U.S. life insurance market YTD.

Indexed Universal Life
In the second quarter 2024, indexed universal life (IUL) new premium was $917 million, a 1% increase from prior year. Policy sales jumped 12% in the second quarter due to the continued growth in mid-to-lower case market.

YTD, IUL premium grew 2% to $1.79 billion.  The number of policies sold spiked 12%, with about half of carriers posting positive growth. IUL premium represented 23% of the total new annualized premium in the first half of the year.

For more details on the sales results, go to Second Quarter 2024 U.S. Life Insurance Industry Estimates in LIMRA’s Fact Tank.

• To view the top 20 sales rankings of total U.S. life insurance by new annualized premium and policy sales in the second quarter of 2024, see Second Quarter 2024 YTD Total U.S. Life Insurance Sales Rankings.
• To view the top 20 rankings of whole life insurance sales leaders in the second quarter of 2024, visit Second Quarter 2024 YTD Whole Life Sales Rankings.
• To view the top 20 rankings of term life insurance sales leaders in the second quarter of 2024, visit Second Quarter 2024 YTD Term Life Sales Rankings.
• To view the top 20 rankings of variable universal life insurance sales leaders in the second quarter of 2024, visit Second Quarter 2024 YTD Variable Universal Life Sales Rankings.
• To view the top 20 rankings of indexed universal life insurance sales leaders in the second quarter of 2024, visit Second Quarter 2024 YTD Indexed Universal Life Sales Rankings.
• To view the top 20 rankings of fixed universal life insurance sales leaders in the second quarter of 2024, visit Second Quarter 2024 YTD Fixed Universal Life Sales Rankings.

LIMRA’s Retail Individual Life Insurance Sales Survey represents 80% of the U.S. life insurance market. Since 1921, the U.S. life insurance industry has relied on LIMRA’s benchmark sales study for accurate data and trending insights. 

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About LIMRA
Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections and solutions to help more than 700 financial services member organizations navigate change with confidence. Visit LIMRA at www.limra.com.