After a strong third quarter that saw life insurance new premium rise 6%, LIMRA executives are ready to declare a fourth consecutive year of record-high new premium. Total new annualized premium jumped 6% to $3.9 billion in the quarter, according to LIMRA’s third quarter 2024 retail individual life insurance sales survey. The number of policies sold in the third quarter was level with the same period in 2023.
For the year, new premium topped $11.6 billion, up 1% over the prior year’s results. In the first nine months of 2024, policy count was flat. Policy count had slipped during the second quarter. “Following solid third quarter results and strong preliminary October sales figures, LIMRA expects 2024 will mark the fourth year of record-high new premium collected for the industry,” said John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “Barring an unforeseen economic downturn, LIMRA is forecasting life sales to grow in 2025.”
Variable universal life
Variable universal life (VUL) new premium totaled $668 million in the third quarter, which is 41% higher than in the third quarter of 2023. Accumulation-focused products drove much of the sales this quarter, prompted by the continued growth in the equity markets.
The number of policies sold rose 3% in the quarter. For the year, VUL new premium jumped 17% to $1.6 billion and policy count increased 4%. In the third quarter, VUL held 17% of the total U.S. individual life insurance market.
Whole life
WL new premium totaled $1.3 billion in the third quarter, down 3% from the prior year’s results. The number of WL policies sold slipped 1%. For the year, WL new premium dropped 6% to $4.3 billion. Policy count fell 4% compared with the same period in 2023.
“Whole life (WL) sales continue to struggle under higher interest rates as consumers move to products with potentially better returns,” noted Karen Terry, assistant vice president, head of LIMRA’s insurance product research. “Should the yield curve return to normal next year, we expect WL sales to improve in 2025.”
In the third quarter, WL new premium represented 34% of the total life insurance market.
Indexed universal life
Indexed universal life (IUL) new premium was $882 million in the third quarter, up 2% 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 improved 1% 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
Fueled by elevated interest rates, fixed universal life new premium improved for the fifth consecutive quarter. Fixed UL increased 11% year over year to $260 million in the third quarter. YTD, fixed UL new premium was $788 million, 8% above prior year’s results. Policy count dropped 9% in the quarter and 7% for the year.
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 $727 million, down 1% year over year. Policy count also fell 1%, compared with third quarter 2023. YTD, new premium was $2.3 billion, up 1% from the same period in 2023. The number of policies sold increased 1% in the first nine months of 2024.
Term life new premium represented 19% of total sales in the third quarter.