The US individual life insurance market posted another quarter of growth in the second quarter of 2026, with total new annualized with excess premium (AWEP) reaching $4.7 billion, a 3% increase over the same period a year ago.
Whole life and variable universal life led the charge, according to new data from LIMRA. Policy count climbed 8% year-over-year, a sign that demand is broadening beyond premium volume alone, and one that financial advisors and wealth management professionals will find relevant as they assess protection planning opportunities for clients.
Whole life insurance was the standout performer of the quarter. New AWEP reached $1.78 billion, up 9% from Q2 2025, while policy sales grew 11% and now commands 37% of total new AWEP, making it the largest single product category in the market.
Six in 10 whole life writers increased premium sales during the quarter, and approximately half grew their policy count, suggesting the gains are fairly broadly distributed across carriers rather than driven by a single outlier.
"The individual life insurance market extended its growth in the second quarter, powered by whole life and variable universal life," said Bryan Hodgens, head of research at LIMRA.
Variable universal life (VUL) recorded the sharpest premium growth of any product line, with new AWEP of $800 million representing an 11% year-over-year increase.
VUL now accounts for approximately 17% of total new AWEP. Policy count, however, was essentially flat compared to Q2 2025, an indication that premium growth is being driven by larger face amounts and more affluent purchasers rather than by a broader base of new policyholders.
Term life also showed solid footing, with new AWEP of $829 million (up 7%) and policy count rising 6%. Term remains a key gateway product, particularly as advisors work with younger or middle-market clients building foundational coverage.
Indexed universal life (IUL), however, posted its first premium decline since Q2 2023. New AWEP came in at just under $1.1 billion, down 11% from the prior year, though policy count still grew 5%.
The divergence between falling premium and rising policies may indicate a shift toward lower face-amount IUL sales or increased price sensitivity among buyers. IUL retains a 23% share of total new AWEP, making it the second-largest segment behind whole life.
Fixed universal life was essentially flat, with new AWEP of $240 million and a 1% increase in policy count, holding a 5% market share.
The LIMRA survey, which covers approximately 85% of the US life insurance market, reflects a market that is growing in both premium volume and policy count; a combination that suggests demand is real rather than purely inflationary.
One methodological note worth flagging: beginning with Q1 2026, LIMRA transitioned from its traditional annualized premium (AP) metric to annualized with excess premium (AWEP), which captures total premium including excess payments above the base amount. Advisors and analysts comparing these figures to prior-year reports using the old AP methodology should account for that change when benchmarking performance.
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