Whole Life Insurance Dominates as US Life Insurance Sales Reach Record Highs in 2023

Whole Life Insurance Dominates as US Life Insurance Sales Reach Record Highs in 2023

Keywords: US life insurance sales, whole life insurance, term life insurance, IUL insurance, VUL insurance, UL insurance, LIMRA, record-setting growth, post-pandemic growth, insurance market trends

In 2023, the US life insurance market witnessed unprecedented growth, with total new annualized premiums hitting a record $15.6 billion, marking the third consecutive year of expansion. Whole life insurance emerged as the frontrunner, maintaining a stable new premium of $1.6 billion in the fourth quarter and securing a slight 1% increase to $6.1 billion for the year, capturing 39% of the market share.

Term life insurance also saw significant growth, experiencing an 8% increase in new premiums in the fourth quarter and a 5% rise for the entire year, amounting to nearly $3 billion and representing 19% of the market share. Indexed universal life (IUL) insurance reported a 3% increase in premiums in the fourth quarter, despite a 5% decline for the year. Variable universal life (VUL) insurance and fixed universal life (UL) insurance also saw growth, maintaining considerable market shares.

John Carroll, senior vice president at LIMRA and LOMA, highlighted the industry's robust post-pandemic growth, with increased sales reported by a majority of companies. Carroll attributed this growth to consumers' increased confidence in the economy and their financial outlook, noting a 4% increase in policy count in 2023.

However, amid the positive trend, a Senate report raised concerns about the use of high-end life insurance plans by the wealthiest Americans to avoid taxes. Despite this, the overall outlook for the US life insurance market remains positive, with whole life insurance leading the way in sales and anticipated growth in the coming years.