Life insurance sales in the U.S. are experiencing robust growth and notable product innovation in 2025, driven by heightened consumer awareness, strong equity markets, and advances in product design and distribution.

Sales Trends

• Premium Growth:
  U.S. individual life insurance new annualized premium rose 8% year-over-year to $3.94 billion in Q1 2025, continuing a multi-year trend of record-high premium volumes129. LIMRA forecasts overall premium growth between 2% and 6% for 202538.

• Policy Sales:
  The number of policies sold increased by 1% in Q1 2025 compared to the same period in 2024, indicating steady consumer demand29.

• Product Mix:

  • Whole Life: Remains the largest segment, accounting for 37% of new annualized premium, with a 2% increase in policy count12.

  • Indexed Universal Life (IUL): IUL sales surged 11% to $959 million in Q1, with a 7% rise in policies sold. IUL premiums now make up 24% of new premium, and growth is expected to continue moderately123.

  • Variable Universal Life (VUL): VUL new premium jumped 41% year-over-year, with 6% more policies sold, reflecting strong equity market performance1238.

  • Term Life: Saw a 1% decline in new premium and a 2% drop in policy count, now representing 19% of the market123.

  • Fixed Universal Life: New premium fell 4%, but the segment is stabilizing after years of decline23.

Product Innovations

• Indexed and Variable Universal Life:
  Insurers are enhancing these products with features such as higher face amounts, simplified underwriting, and guaranteed death benefits. The strong growth in IUL and VUL is attributed to both consumer demand for flexible, accumulation-oriented products and the success of new or enhanced product designs135.

• Digital Distribution and Streamlined Sales:
  Carriers are expanding digital platforms and simplifying the sales process, making it easier for consumers to purchase and manage policies online. This has supported growth, especially in the middle market and among younger buyers135.

• Broader Distribution and Targeted Solutions:
  Companies are broadening their distribution networks and offering more tailored solutions, such as final expense and small policy products, to address specific market needs135.

• Private Equity and Reinsurance Investment:
  Increased capital from private equity and reinsurance is fueling innovation, enabling carriers to develop and launch new products more rapidly1.

Market Drivers

• Consumer Awareness:
  The COVID-19 pandemic and ongoing economic uncertainty have heightened awareness of the need for life insurance, driving demand across demographics23.

• Economic Factors:
  Strong equity markets are boosting VUL sales, while moderating interest rates are expected to support growth in IUL and whole life products38.

• Generational Shifts:
  Younger generations (Gen Z, Millennials, Gen X) are increasingly purchasing life insurance as they plan for retirement and family security2.

In summary:
The U.S. life insurance market in 2025 is marked by strong premium growth, especially in indexed and variable universal life products, and ongoing innovation in product design and distribution. Digitalization, targeted solutions, and increased capital investment are enabling insurers to meet evolving consumer needs and expand market reach