Q2 Life Insurance Sales Surge: The U.S. life insurance market witnessed an unprecedented surge in policy sales during the second quarter of 2025, as new annualized premiums soared by 13% to $4.5 billion, according to LIMRA’s retail life insurance sales survey results. These figures, representing 80% of the U.S. market, highlight a robust rebound in consumer demand for life insurance solutions amid economic uncertainty and market volatility.
Northwestern Mutual led the industry, generating $572 million in new annualized premium for the quarter, followed by Pacific Life in second place. Prudential Financial attracted the most total premium, amassing nearly $1.1 billion in Q2 2025. Remarkably, the number of life insurance policies sold rose by 7% in the second quarter, marking the highest growth rate recorded in LIMRA’s quarterly survey since 1983.
Variable Universal Life Insurance Also On the Rise
Variable Universal Life (VUL) experienced significant growth, with new premium increasing 17% to $611 million in Q2. The number of VUL policies sold rose by 2%, supported by positive growth from half of the VUL writers, including seven of the top ten carriers. For the first six months of 2025, VUL new premium totaled $1.2 billion, reflecting a 27% year-over-year increase, while policy count improved 4%. VUL represented 14% of the total U.S. individual life insurance market during this period.
Whole Life Insurance Sales Remain Strong
Whole Life (WL) insurance posted its third consecutive quarter of positive growth. In Q2, WL new premium climbed 6% to $1.6 billion, with policy count increasing by 14%, marking the strongest growth in policy sales over the last 25 years.
Karen Terry, Corporate Vice President at LIMRA, highlighted that “final expense and other smaller-face whole life policies continue to drive overall WL sales growth amid economic uncertainty.” In the first half of 2025, WL new premium totaled $3.1 billion, up 4% year-over-year, and accounted for 45% of the total life insurance market, the highest market share since 1995.
Term Life Insurance Shows Moderate Growth
Term Life Insurance recorded $792 million in new premium, up 3% from Q2 2024. Policy count increased by 1%, with growth largely attributed to online distributors and expanded distribution channels.
For the first six months of 2025, term life new premiums exceeded $1.5 billion, up 1% year-over-year, while policy count remained stable compared to 2024. Term life represented 18% of total U.S. life insurance sales during this period.
Fixed Universal Life Insurance Sees Decline
Unlike other segments, Fixed Universal Life (Fixed UL) experienced a downturn. New fixed UL premium dropped 8% to $245 million in Q2, and policy count fell 7% from the previous year.
For the first half of the year, Fixed UL new premium totaled $483 million, declining 5% year-over-year, while policy count contracted 8%. Fixed UL accounted for 6% of the total U.S. life insurance market in the first six months of 2025.
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FAQ’s
1. Why are Indexed Universal Life (IUL) insurance sales growing so rapidly?
Indexed Universal Life insurance is growing rapidly due to its appeal in volatile equity markets. Consumers are increasingly seeking life insurance products that offer both protection and investment growth potential.
2. How does Variable Universal Life (VUL) differ from other life insurance products?
Variable Universal Life (VUL) differs by combining life insurance protection with investment options. Policyholders can allocate a portion of their premiums into a selection of investment sub-accounts, allowing for potential cash value growth based on market performance.
