The U.S. individual life insurance market in 2025 is positioned for continued growth and innovation, building on several years of heightened consumer interest and evolving economic conditions.

Market Growth and Premiums

• Premium growth is projected between 2% and 6% in 2025, following record-setting years in 2022–2024. LIMRA forecasts total life insurance premium to reach $15.9 billion by the end of 2024, with further increases expected in 202512.

• The market has seen a sustained boost in demand since the COVID-19 pandemic, as Americans became more aware of the importance of financial protection for their families23.

Product Trends

• Variable Universal Life (VUL): Strong equity markets have driven double-digit growth in VUL sales, with up to 9% growth expected in 2025. More insurers are offering VUL products with death benefit guarantees23.

• Indexed Universal Life (IUL): IUL premiums are forecast to grow by 2–6% in 2025, with simplified, lower face-amount products gaining popularity123.

• Fixed Universal Life (UL): After a rebound in 2023–2024, growth is expected to moderate but remain positive, with projected increases of 3–7% in 202523.

• Whole Life: After a period of decline, whole life sales are expected to return to positive growth (1–5%) as interest rates stabilize12.

• Term Life: Term sales rebounded in 2023, driven by digital distribution and competitive pricing, with low to moderate growth (1–5%) forecast for 202512.

Consumer Behavior and Demographics

• Younger generations (Gen Z, Millennials, Gen X) are increasingly purchasing life insurance for both protection and retirement planning, helping to close the gap between coverage needs and actual coverage3.

• The number of policies sold rose by 1% year-over-year in early 2025, and average policy sizes are increasing, reflecting greater financial awareness and preparedness3.

Technology and Distribution

• Insurers are rapidly adopting AI, digital platforms, and big data to streamline underwriting, personalize products, and improve customer experience4.

• Digital and third-party distribution channels are expanding, making it easier for consumers to compare and purchase policies12.

Market Share and Competition

• The market remains highly competitive, with leading carriers like Northwestern Mutual, MetLife, and New York Life holding the largest shares3.

• Private equity investment and a focus on accumulation-oriented products are reshaping the competitive landscape4.

Key Economic Factors

• Lower interest rates are expected to relieve pressure on IUL and whole life sales, while higher incomes and lower unemployment support overall market growth12.

• Equity market performance will continue to influence product mix, especially for VUL and IUL products23.

In summary:
2025 will see moderate but steady growth in U.S. individual life insurance, with innovation in product offerings, increased digital adoption, and a broadening customer base—especially among younger generations. Economic stability, rising incomes, and continued consumer focus on financial security are expected to drive the market forward