Individual Life Insurance Sales Jumped 10% in 2025
Total new annualized life insurance premiums increased 10% year over year to $17.5 billion in 2025, according to preliminary results from LIMRA’s individual life insurance sales survey. New individual life insurance premiums have set records for four of the past five years, including 2025, according to the survey, with the number of policies sold rising 7% for the year.
Last year, indexed universal life (IUL) set quarterly and annual sales records. In the fourth quarter, IUL’s new annualized premium was $1.3 billion, up 12% year over year, according to LIMRA.
Driven by final expense product sales, total whole life (WL) premium and policy count also posted positive growth for the fifth consecutive quarter. However, variable universal life (VUL) new premiums totaled $770 million in the fourth quarter, down 3%, compared with the fourth quarter of 2024.
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Term life new premium represented 17% of total sales in 2025, when premiums increased 3% year over year to $3.1 billion. The number of policies sold grew 2%, compared with 2024 results. LIMRA is forecasting term sales growth to remain relatively flat in 2026.
Meanwhile, fixed universal life (FUL) sales fell for the fifth consecutive quarter. New fixed UL premiums contracted 3% in the fourth quarter to $259 million. Policy count fell 3% from the prior-year results.
For the year, FUL’s new premium was $985 million, down 4% year over year, and policy count dropped 6%. Fixed UL new premium held 6% of the U.S. life insurance market in 2025.
“It was a remarkable year for individual life insurance. In addition to the favorable economic conditions, advances in technology have improved underwriting automation, digital applications, marketing and lead generation, making the buying process faster and more accessible,” says Sean Grindall, senior vice president and chief member relations and solutions officer, LIMRA and LOMA. “These improvements benefit both financial professionals and consumers, reducing friction and expanding distribution reach.”
“LIMRA expects economic conditions to weaken in 2026, resulting in overall life insurance new annualized premiums to grow between 2% and 6% in 2026,” he says. “This is slightly above the historical average of 3.1% but well below the double‑digit surge of 2025.”
The overall industry growth is encouraging to witness, explains Holly Snyder, president of Nationwide Life Insurance, because “more Americans are reaping the benefits of life insurance, which means “the industry is making headway in reducing a critical protection gap in our country.”
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While the past year’s performance underscores strong momentum, attention is already turning to what comes next as economic conditions evolve and consumer expectations continue to rise.
“The life insurance market will continue to reward carriers that think long-term about how they manage risk and support customers throughout their lives. We expect continued demand for flexible protection solutions, paired with higher expectations for speed, transparency and personalization,” Snyder says.
Snyder also expects “technology and automation to fundamentally reshape the insurance experience—from new business and underwriting, to claims and customer engagement.”
To meet the accelerating demand for guaranteed, predictable value products that support insured throughout their lifetime, “my advice to advisors is to keep the focus where it belongs: on long-term outcomes for clients,” Snyder says.
“Products matter, but so do the carrier behind them, the service model, and the commitment to stand by clients through changing needs and economic conditions,” she adds. “In a complex environment, advisors who lead with trust, education, and care will continue to differentiate themselves, and the right carrier partnerships can make all the difference.”
Will Jones is IA editor-in-chief.
