Life insurance total new annualized premium increased 3% to $15.9 billion in 2024, the fourth consecutive year of record premium.
That’s according to retail life insurance sales survey results from LIMRA, the life insurance marketing and research organization, which also found that the number of policies in 2024 was essentially unchanged from 2023.
“Independent distribution continues to drive the record sales in the U.S. market,” said John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “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. 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,” Carroll noted in a press release.
In the fourth quarter of 2024, new premium rose 9% year over year to $4.5 billion. The number of policies sold was up 1% from the fourth quarter of 2023.
Indexed Universal Life
Indexed universal life saw quarterly and annual sales records. IUL new premium was up 10% to $1.15 billion in the fourth quarter. IUL new premium represented 24% of the total U.S. life insurance market in 2024.
LIMRA attributed to surge to new or enhanced product designs and expanded distribution, with half of IUL carriers reporting gains. The total number of policies was up 6% in the fourth quarter.
IUL new premium totaled a record-high $3.8 billion in 2024, an increase of 4% from 2023. Policy count grew 10%.
Variable Universal Life
Variable universal life new premium was $741 million in the fourth quarter, up 37%. The new policies sold count increased 10% in the quarter. In 2024, VUL new premium totaled $2.2 billion, an increase of 15% year over year. The number of policies was up 6%.
In 2024, VUL accounted for 14% of the total U.S. individual life insurance market.
Fixed Universal Life
In contrast with the general upward trend, fixed universal life new premium decreased 1% in the fourth quarter to $275 million. Total number of policies declined 13% from the fourth quarter of 2023. For the year, fixed UL new premium was $1.1 billion, 7% higher than prior year’s results. Policy count decreased 12%.
Fixed UL new premium accounted for 7% of the U.S. life insurance market in 2024.
Whole Life
Whole life sales rebounded in the fourth quarter after three consecutive quarters of decreases. WL new annualized premium was $1.6 billion in the fourth quarter, 3% more than that of the previous year. 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,” Karen Terry, assistant vice president and head of LIMRA Insurance Product Research, said in the release. “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 accounted for 36% of the total life insurance market in 2024. That’s the product line’s lowest market share since 2014.
Term Life Insurance
Term life new premium was $749 million, a decrease of 1% from 2023’s results. Policy count also declined 1% in the quarter. In 2024, new premium was more than $3 billion, up 1% from 2023 results. The number of policies sold was up 1%.
Term life new premium was 19% of total sales in 2024.
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