U.S. Life Insurance Sales Accelerate in Q2 2025 with Indexed Universal Life Leading Growth
The U.S. life insurance market demonstrated robust growth in the second quarter of 2025, with total new annualized premium increasing by 13% to $4.5 billion, according to LIMRA's retail life insurance sales survey. This survey covers approximately 80% of the market. Northwestern Mutual led in new annualized premium with $572 million, while Prudential Financial attracted the highest total premium in Q2, nearing $1.1 billion. The number of policies sold rose by 7%, marking the strongest growth since 1983.
Indexed Universal Life (IUL) products continued to drive market expansion, setting new quarterly and mid-year sales records. IUL new premium surged 31% to $1.2 billion in Q2, accounting for 25% of the total U.S. life insurance market in the first half of 2025. This growth is attributed to simplified product offerings, expanded distribution, and increased consumer demand for investment protection amidst market volatility.
Variable Universal Life (VUL) also showed notable gains, with new premium rising 17% to $611 million in the quarter and up 27% year-over-year in the first six months. VUL held 14% of the individual life market. Whole Life (WL) insurance sustained positive momentum for the third consecutive quarter, with new premium up 6% and policy count increasing 14%, the highest policy sales growth in 25 years. WL's market share reached 45%, the highest since 1995.
Term life insurance experienced modest growth, with new premium up 3% to $792 million in Q2 and policy count steady, supported by online distributors and expanded distribution channels. Conversely, Fixed Universal Life (Fixed UL) sales declined, with new premium falling 8% to $245 million and policy count decreasing 7% in the quarter.
The report highlights continuing life insurance application growth, evidenced by a 6.1% year-over-year increase in August 2025, contributing to an 11% rise in new annualized premium year-to-date. Market dynamics reflect consumer preferences shifting towards products with investment elements and simplified processes, underscoring the competitive landscape and innovation in product offerings.
Industry leaders emphasize the opportunity to address significant life insurance coverage gaps within the U.S. population. The evolving regulatory and economic environment, alongside technological advancements, are driving changes in product sales and distribution strategies. This sustained growth phase indicates a resilient life insurance market adapting to consumer needs and market conditions.