Life insurance new premium surges 8% in third quarter, LIMRA finds
Total new annualized premium jumped 8% to $3.9 billion in the third quarter 2024, according to preliminary results from LIMRA’s retail individual life insurance sales survey.
The number of policies sold rose 3% year over year in the third quarter. Year to date, new premium topped $11.6 billion, up 2% over the prior year’s results. In the first nine months of 2024, policy count is up 1%.
“Market growth was widespread with 6 in 10 carriers reporting positive gains this quarter. All product lines except whole life experienced sales growth including a substantial increase for variable universal life (VUL),” said John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “If the economy remains strong with inflation and unemployment stable, LIMRA expects sales to be solid through the end of the year, likely marking the fourth consecutive year of record premium.”
Variable universal life
Variable universal life (VUL) new premium totaled $665 million in the third quarter, 41% higher than third quarter 2023. The number of policies sold rose 4% in the quarter. YTD, VUL new premium jumped 16% to $1.6 billion and policy count increased 4%.
“While VUL growth was primarily driven by a few large carriers, half of VUL carriers reported increases. Strong equity market growth has enhanced the appeal in VUL products in general, and most of the expansion this year was from accumulation-focused products,” noted Karen Terry, assistant vice president and head of LIMRA Insurance Product Research.
In the third quarter, VUL held 17% of the total U.S. individual life insurance market.
Indexed universal life
Indexed universal life (IUL) new premium was $897 million in the third quarter, up 4% from the prior year. Carriers reporting increases attributed the growth to expanded distribution, product innovation and higher consumer demand. Policy count grew 9% in the third quarter. In the first nine months of 2024, IUL new premium ticked up 2% to $2.7 billion and the number of policies sold increased 11%.
IUL new premium represented 23% of the total U.S. life insurance market in the third quarter.
Fixed universal life
Fixed universal life (Fixed UL) new premium increased 13% year over year to $266 million in the third quarter. This is the fifth consecutive quarter of growth. Nevertheless, the number of policies sold dropped 9% in the quarter. For the year, fixed UL new premium was $798 million, 9% higher than prior year’s results. Policy count fell 7%.
“Combination life/long-term care product sales and higher interest rates drove the overall growth of fixed UL sales in the first nine months of 2024,” said Terry. “LIMRA expects sales to remain strong through 2024, but the continued interest rate cuts will likely have an impact in 2025.”
In the third quarter, fixed UL new premium held 7% of the U.S. life insurance market.
Term life insurance
In the third quarter, term life new premium totaled $739 million, level with prior year. Policy count also was flat, compared with third quarter 2023. For the year, new premium was $2.3 billion, up 2% from the same period in 2023. The number of policies sold increased slightly, up 1%.
Term life new premium represented 19% of total sales in the third quarter.
Whole life
Whole life sales continue to struggle under higher interest rates as consumers move to products with potentially better returns. WL new premium totaled $1.4 billion in the third quarter, down 1% from the prior year’s results. The number of WL policies sold, however, improved 7% in the quarter. Sales of lower-face value products such as final expense policies contributed to the growth.
For the year, WL new premium dropped 5% to $4.3 billion. Policy count fell 2% compared with the same period in 2023.
In the third quarter, WL new premium represented 34% of the total life insurance market. For more details on the sales results go to LIMRA’s Fact Tank.
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