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LIMRA: U.S. Individual Life Insurance Premium Sets New Sales Record in 2024

3/25/2025

Independent distribution expands market share, driving record indexed universal life sales

 

WINDSOR, Conn., March 25, 2025 — Total new annualized premium to increase 3% in 2024 to $15.9 billion, according to LIMRA’s retail life insurance sales survey results. This is the fourth consecutive year of record-high premium. In 2024, policy count was level with 2023 results.

“Independent distribution continues to drive the record sales in the U.S. market. This channel represented 6 in 10 dollars sold in 2024 — up from half of new premium sold

 just five years ago and represented over 90% of the record indexed universal life (IUL) sales in 2024,” noted John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “As middle-income and mass affluent consumers look for new investment tools to help them save for retirement, the IUL market has shifted. We see more smaller and simplified policies sold to  consumers seeking investment protection in a volatile equity market environment.”

In the fourth quarter, total new premium rose 9% year over year to $4.5 billion. The number of policies sold increased 1%, compared with the fourth quarter 2023 results.

Indexed Universal Life
Indexed universal life (IUL) set a new quarterly and annual sales record. IUL new premium increased 10% to $1.15 billion in the fourth quarter. New or enhanced product designs and expanded distribution propelled the sales this quarter with half of IUL carriers reporting gains. Policy count grew 6% in the fourth quarter. 

In 2024, IUL new premium totaled a record-high $3.8 billion in 2024, up 4% from the prior year. Policy count grew 10% year over year.  

IUL new premium represented 24% of the total U.S. life insurance market in 2024.

Variable Universal Life
Variable universal life (VUL) new premium rose 37% to $741 million in the fourth quarter. The number of policies sold increased 10% in the quarter. For the year, VUL new premium was $2.2 billion, up 15% year over year and policy count improved 6%.

In 2024, VUL held 14% of the total U.S. individual life insurance market.

Fixed Universal Life
Fixed universal life (fixed UL) new premium dropped 1% in the fourth quarter to $275 million. Policy count fell 13% from the 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 12%.

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

Whole Life
Following three consecutive quarters of declines, whole life (WL) sales rebounded in the fourth quarter. WL new annualized premium totaled $1.6 billion in the fourth quarter, 3% above prior year’s results. The number of WL policies sold increased 3% in the quarter.

“Final expense and other smaller-face whole life policies drove the overall growth in the fourth quarter,” said Karen Terry, assistant vice president and head of LIMRA Insurance Product Research. “Historically, interest rate cuts and increased market volatility bolster whole life sales and we expect this trend to continue in 2025.”

In 2024, WL new premium fell 4% to $5.8 billion, compared with 2023 results. Policy count fell 2% year over year.

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

Term Life Insurance
Term life new premium totaled $749 million, down 1% than the prior year’s results. Policy count also fell 1% in the quarter. In 2024, new premium topped $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.

For more details on the sales results, visit Life Insurance Sales Growth Rates (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.

 

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