US Individual Life Insurance Sales Surge 14% in Q3 2025 Driven by Whole Life and IUL Products

In the third quarter of 2025, individual life insurance sales in the U.S. demonstrated robust growth with total new annualized premiums rising 14% year over year to $4.3 billion. The number of policies sold increased by 10%, contributing to a strong market performance across several life insurance product categories. Year to date, new annualized premiums reached $12.7 billion, marking a 12% increase compared to the previous year, alongside a 6% rise in policy counts. Whole life insurance products notably contributed to this growth, driven primarily by increased demand for final expense policies among middle- and lower-income consumers. Whole life sales recorded an 11% increase in new premiums and an 18% surge in policy counts for the quarter, maintaining positive growth for the fourth consecutive quarter. Year-to-date, whole life premiums accounted for 36% of the total individual life insurance market. Indexed universal life (IUL) insurance also posted significant gains with new premiums exceeding $1 billion, up 16% year over year. This growth stemmed from expanded distribution channels, product enhancements, and favorable economic factors such as a strong equity market and higher interest rates. The product's appeal spans both affluent investors and middle-income individuals through simplified offerings. Year-to-date, IUL premiums hit a record $3.2 billion, representing 25% of the market. Variable universal life (VUL) insurance experienced the highest premium growth in the quarter with a 35% increase to $692 million, supported by a 4% rise in policies sold. This trend continued year-to-date with VUL premiums at $1.9 billion, a 30% increase from the prior year. Term life insurance showed moderate growth with premiums increasing 5% to $760 million, facilitated by technological advances such as underwriting automation and wider distribution. Conversely, fixed universal life (fixed UL) sales declined for the fourth consecutive quarter, with new premiums falling 4% in the third quarter to $245 million and a 4% reduction in policy count. Year-to-date, fixed UL premiums and policies decreased by 5% and 7% respectively, representing only 6% of the total market. The overall positive trends in new sales and premiums across most life insurance products underline a dynamic and evolving U.S. life insurance market in 2025.