What's Happening?
According to LIMRA's preliminary individual life insurance sales results, life insurance new annualized premium increased 16% year over year to $4.3 billion in the third quarter of 2025. The number of policies
sold rose by 10% during this period. The report highlights growth across various product lines, with whole life and variable universal life policies showing significant increases. Whole life new premium totaled $1.5 billion, marking a 12% rise from the previous year, while variable universal life new premium surged 46% to $751 million.
Why It's Important?
The growth in life insurance premiums indicates a strong consumer interest in securing financial protection amidst uncertain economic conditions. This trend may reflect increased awareness and demand for life insurance products as a means of estate planning and financial security. The rise in premiums and policy sales could benefit insurance companies through higher revenues and market share, while consumers may gain access to more diverse and competitive insurance offerings.
What's Next?
LIMRA expects the sales trend to continue through the end of 2025, with growth moderating over the next few years. Insurance companies may focus on expanding distribution channels and enhancing product offerings to maintain momentum. The industry could also see increased investment in underwriting automation and technology to streamline processes and improve customer experience.
Beyond the Headlines
The surge in life insurance sales may lead to discussions about the role of insurance in financial planning and the importance of consumer education on policy options. It could also prompt insurers to innovate and adapt to changing consumer needs and preferences.
