The U.S. individual life insurance market marked its fourth consecutive year of record-high premium in 2024, with total new annualized premium reaching $15.9 billion — a 3% increase over the previous year, according to LIMRA’s newly released retail life insurance sales survey.
While the overall number of policies sold remained steady compared to 2023, key trends in product performance and distribution channels signaled important shifts in consumer behavior and market dynamics.
Independent Distribution Powers Market Momentum
Independent distribution channels continued their upward trajectory in 2024, now accounting for 60% of new premium sales — a significant increase from 50% just five years ago. This shift played a pivotal role in driving record indexed universal life (IUL) sales.
“Independent distribution continues to drive the record sales in the U.S. market,” said John Carroll, senior vice president and head of Life & Annuities at LIMRA and LOMA. “We see more smaller and simplified policies sold to consumers seeking investment protection in a volatile equity market environment.”
Indexed Universal Life Sets New Records
IUL products emerged as the standout performer in 2024:
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Annual new premium hit $3.8 billion, up 4% year over year.
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IUL accounted for 24% of the total U.S. life insurance market.
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Policy count grew 10% year over year, with a 6% increase in Q4 alone.
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Q4 new premium alone reached $1.15 billion, up 10% from the prior year.
Sales gains were fueled by new or enhanced product designs and expanded distribution, with half of IUL carriers reporting growth.
Variable Universal Life Sees Significant Growth
Variable universal life (VUL) also saw strong gains:
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Fourth-quarter premium jumped 37% to $741 million.
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Annual premium totaled $2.2 billion, a 15% year-over-year increase.
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VUL now holds 14% of the total U.S. life insurance market.
Mixed Results Across Other Product Lines
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Fixed Universal Life: Despite a 1% dip in Q4, fixed UL ended the year up 7% with $1.1 billion in new premium. However, policy count fell 12% for the year.
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Whole Life: WL rebounded in Q4 with a 3% increase in premium and policy count. Yet, full-year premium declined 4% to $5.8 billion — its lowest market share (36%) since 2014.
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Term Life: Term life showed modest growth with $3 billion in new premium, up 1% over 2023. It represented 19% of total sales in 2024.
Looking Ahead
The 2024 results underscore evolving consumer preferences, particularly the growing demand for flexible, investment-linked life insurance products amid market uncertainty. LIMRA analysts suggest that economic factors like interest rate changes and equity market volatility will continue to shape product performance in 2025.
For more in-depth results, product rankings, and trends, LIMRA members can explore the organization’s Fact Tank and product-specific sales leaderboards available on LIMRA’s website.
About LIMRA
Founded in 1916, LIMRA supports more than 700 member organizations with research, insights, and solutions that empower life insurance and financial services providers to navigate industry change with confidence.
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