US individual life insurance sales reached a record high in 2025, with total new annualized premium exceeding $17.5 billion, reflecting a 10% increase compared with the previous year, according to LIMRA’s latest industry survey.
The results mark the fourth time in the past five years that the market has set a new sales record, highlighting sustained demand for life insurance products across consumer segments.
Growth in 2025 was supported by both rising premium volumes and increased policy sales, with the number of policies sold climbing 7% year over year. The performance suggests continued consumer interest in financial protection products, particularly amid ongoing economic uncertainty and concerns about long-term financial security.
Indexed universal life (IUL) was a major contributor to the overall growth. New premium for IUL reached $4.5 billion in 2025, up 17% year over year, accounting for roughly one-quarter of the total life insurance market. LIMRA noted that expanded distribution, product enhancements, and favorable equity market conditions contributed to the segment’s strong performance.
Whole life insurance also recorded steady gains, with new premium increasing 7% to $6.4 billion. This segment represented the largest share of the market at 37%, supported in part by demand for final expense products and increased interest from middle-income consumers seeking stable, guaranteed coverage.
Other product lines delivered mixed results. Variable universal life (VUL) premium rose 17% to $2.6 billion, while term life insurance posted more moderate growth of 3%, reaching $3.1 billion. In contrast, fixed universal life (UL) continued its downward trend, with premium declining 4% to $984 million.
Looking ahead, LIMRA expects growth to moderate in 2026 as economic conditions soften and market volatility affects interest-sensitive and market-linked products.
Despite these expectations, the 2025 results underscore the resilience of the US life insurance market, with consumers continuing to prioritise financial protection and long-term planning in a changing economic environment.
