Americans bought more life insurance again in the second quarter, and they bought the permanent kind.
LIMRA’s quarterly sales survey, published August 26, 2026, puts new annualized premium for individual life insurance at $4.75 billion, up 3% from a year earlier. The number of policies sold rose 8%, a stronger signal than the dollar figure because it means more households, not just bigger policies.
“The market extended its growth in the second quarter, powered by whole life and variable universal life premium growth,” said Bryan Hodgens, who leads LIMRA’s research.
Where the growth came from
- Whole life: $1.77 billion, up 9%, with policy count up 10%. It now accounts for 37% of all new premium.
- Variable universal life: $811 million, up 13%, a 17% share, helped by strong equity markets.
- Term life: $824 million, up 6%, with policies up 5%, also a 17% share.
- Indexed universal life: $1.1 billion, down 9% against a very strong second quarter of 2025, when it had grown 31%. Policy count still rose 6%.
- Fixed universal life: $233 million, down 3%.
The survey covers about 85% of the US market. LIMRA moved to an “annualized premium with excess” methodology at the start of 2026, so the figures are not directly comparable to reports before this year.
What it says about buyers
Term insurance is the cheapest way to protect a family, and its 6% growth is healthy. But the shift toward whole life and VUL suggests buyers with money to commit are treating life insurance as a savings and estate vehicle as well as protection, a pattern that usually strengthens when rates on competing products soften.
For most households the decision still comes down to term: enough coverage to replace income until the mortgage is paid and the children are independent, bought young while rates are low. Our best life insurance companies ranking covers the carriers, term versus permanent, and how much cover to buy.