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Double-digit variable universal life and indexed universal life premium drove remarkable in the fourth quarter results

WINDSOR, Conn., Jan. 30, 2025 — A strong fourth quarter performance drove total new annualized premium to increase 4% in 2024 to $16.2 billion, according to LIMRA’s preliminary life insurance sales survey results. This is the fourth consecutive year of record-high premium. In 2024, policy count was level with 2023 results.

In the fourth quarter, total new premium jumped 14% year over year to $4.6 billion. The number of policies sold rose 2%, compared with fourth quarter 2023 results.

“It was a remarkably strong fourth quarter — exceeding expectations — thanks in large part to robust variable and indexed universal life sales,” noted John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “While overall premium growth continues to increase, the number of policies sold remained stagnant in 2024. To build on the broad sales growth seen since the pandemic and position the industry for the future, it is important for the industry to continue its efforts to reach the 100 million uninsured and underinsured consumers who tell LIMRA they know they need (or need more) coverage to protect their loved ones. 2025 is an opportunity for our members to meet the moment and fulfill our mission.”

Variable Universal Life
Variable universal life (VUL) new premium surged 56% to $845 million in the fourth quarter. The number of policies sold jumped 11% in the quarter. For the year, VUL new premium increased 27% year over year to $2.4 billion and policy count increased 6%.

“While VUL growth was primarily driven by a few large carriers, most VUL carriers reported increases. Strong equity market growth has enhanced the appeal in VUL products in general, and most of the expansion this year was from accumulation-focused products,” noted Karen Terry, assistant vice president and head of LIMRA Insurance Product Research.

In 2024, VUL held 15% of the total U.S. individual life insurance market. This is the highest annual VUL market share since 2006.

Indexed Universal Life
Indexed universal life (IUL) new premium jumped 10% to $1.1 billion in the fourth quarter. New product designs and broader distribution have propelled sales this quarter. Policy count grew 9% in the fourth quarter. IUL new premium totaled $3.8 billion in 2024, up 4% from prior year. Policy count grew 11% year over year.  

IUL new premium represented 23% of the total U.S. life insurance market in 2024.

Fixed Universal Life
Fixed universal life (fixed UL) new premium fell 1% in the fourth quarter to $274 million. Policy count dropped 17% from fourth quarter 2023 results. For the year, fixed UL new premium was $1.1 billion, 7% higher than prior year’s results. Policy count fell 8%.

“After five consecutive quarters of growth, fixed UL premium dipped slightly in the fourth quarter, compared with fourth quarter 2023, as some carriers shifted their focus towards accumulation products such as variable UL and indexed UL,” said Terry. “Despite anticipated additional rate cuts, LIMRA expects fixed UL sales growth to remain positive in the first half of 2025.”

Fixed UL new premium held 7% of the U.S. life insurance market in 2024.

Term Life Insurance
Term life new premium totaled $768 million, 2% higher than prior year’s results. Policy count was flat, compared with fourth quarter 2023. In 2024, new premium was just over $3 billion, up 1% compared with 2023 results. The number of policies sold increased slightly, up 1%.

Term life new premium represented 19% of total sales in 2024.

Whole Life
Throughout 2024, whole life (WL) sales struggled under higher interest rates as consumers move to products with potentially better returns. In light of interest rate cuts in the later part of the year and the possibility of additional cuts in 2025, sales turned around in the fourth quarter. WL new premium totaled $1.6 billion in the fourth quarter, 2% above prior year’s results. The number of WL policies sold increased 4% in the quarter.

In 2024, WL new premium fell 4% to $5.8 billion. Policy count fell 3% compared with 2023 results.

WL new premium represented 36% of the total life insurance market in 2024, which is the product line’s lowest market share since 2014.

For more details on the sales results, go to U.S. Individual Insurance Growth Rates by Product (2024 Fourth Quarter) in LIMRA’s Fact Tank.

LIMRA’s Retail Individual Life Insurance Sales Survey represents 80% of the U.S. life insurance market. With more than 100 years of expertise, LIMRA conducts over 80 benchmark studies — producing nearly 500 reports annually — for our members and the industry as a whole. These studies provide trusted insights and a comprehensive understanding of market dynamics, trends, and behaviors.

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