Q2 life insurance sales surge; policies sold hit quarterly record
Total new annualized premium increased 13% to $4.5 billion in the second quarter, according to LIMRA’s retail life insurance sales survey results, which represent 80% of the U.S. market.
Northwestern Mutual led the way with $572 million in new annualized premium in the quarter, while Pacific Life was second. Prudential Financial attracted the most total premium in Q2 with nearly $1.1 billion.
The number of policies sold rose 7% in the second quarter, which is the highest growth rate recorded in LIMRA’s quarterly survey since 1983.
In the first six months of 2025, new annualized premium surpassed $8.4 billion, up 11% over the prior year. Policy count grew 4% year to date (YTD).
“Indexed universal life sales remain a driving force in the U.S. life insurance market. IUL sales’ success over the past 10 years is due to more simplified or competitive solutions, expanded distribution, and greater demand from consumers, who seek investment protection in a volatile equity market environment,” noted Sean Grindall, senior vice president and head of life and annuities, LIMRA and LOMA. “Although we had significant policy sales growth in the second quarter, our research shows there are 100 million Americans who live with a life insurance coverage gap.”
The MIB Life Index found that life insurance application activity continued to grow in August 2025, with year-over-year activity up 6.1%. On a year-to-date basis, activity through August 2025 was up 2.8%.
LIMRA provided a breakdown of sales by product category:
Indexed universal life
Indexed universal life products set quarterly and mid-year sales records. In the second quarter, IUL new premium leapt 31% to $1.2 billion.
Each of the top ten IUL writers reported gains, citing continued demand in the high-face market, the introduction of new or enhanced products, implementation of new tools to help simplify and speed up sales processes, and the expansion or strengthening of distributor relationships. Policy count rose 4% in the second quarter.
For the year, IUL new premium totaled a record high of $2.1 billion, 21% higher than the prior year’s results. There were 5% more IUL policies sold in the first six months of 2025. IUL new premium represented 25% of the total U.S. life insurance market in the first six months of 2025.
Variable universal life
Variable universal life new premium climbed 17% to $611 million in the second quarter. The number of policies sold increased 2% in the quarter. Half of the VUL writers reported positive growth, including seven of the top 10 carriers.
VUL new premium totaled $1.2 billion in the first months of 2025, up 27% year over year, and policy count improved 4%. In the first six months of 2025, VUL held 14% of the total U.S. individual life insurance market.
Whole life
For the third consecutive quarter, whole life sales posted positive growth. WL new premium totaled $1.6 billion in the second quarter, 6% above the prior year’s results. The number of WL policies sold increased by 14% in the quarter, representing the strongest policy sales growth in 25 years.
“Final expense and other smaller-face whole life policies continue to drive overall WL sales growth in the first half of the year,” said Karen Terry, corporate vice president and head of LIMRA Insurance Research. “With economic uncertainty at the forefront of many consumers’ minds, we expect the WL sales to remain strong through 2025.”
For the year, WL new premium rose 4% to $3.1 billion, compared with the prior year’s results. Policy count grew 8% year over year. WL new premium represented 45% of the total life insurance market in the first half of 2025, which is the product line’s highest market share since 1995.
Term life insurance
Term life new premium totaled $792 million, 3% above the second quarter 2024. Policy count increased 1% in the quarter. Several carriers attribute their growth to online distributors and expanded distribution.
In the first half of 2025, new premiums exceeded $1.5 billion, up 1% year-over-year. The number of policies sold remained level with the same period in 2024. Term life new premium represented 18% of total sales for the year.
Fixed universal life
Fixed universal life sales fell for the quarter and the year. New fixed UL premium dropped 8% in the second quarter to $245 million. Policy count fell 7% from the second quarter of 2024 results.
In the first half of the year, fixed UL new premium was $483 million, 5% lower than the prior year’s results and policy count contracted 8%. Fixed UL new premium held 6% of the U.S. life insurance market in the first six months of 2025.
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