Life insurance sales are proving resilient in 2026 despite the economic uncertainty that has weighed on many financial product categories. LIMRA's tracking of individual life insurance new annualized premium and policy count data through the first quarter of 2026 shows the market building on the record-setting pace set in 2025, with several product lines continuing to post growth even as interest rates remain elevated and consumer confidence remains mixed.
Term Life Continues to Lead
Term life insurance remains the volume driver of the individual life market. LIMRA data shows term policy count growth outpacing premium growth, a pattern consistent with younger buyers -- particularly millennials and Gen Z adults -- entering the market for the first time and selecting lower face-amount policies that fit their budgets. The accessibility of online and direct-to-consumer term underwriting has continued to compress application-to-policy timelines, with accelerated underwriting now handling the majority of term applications under $1 million at most major carriers.
Premium rates for term life have held relatively stable compared to the significant repricing that occurred in 2021 and 2022. Buyers in 2026 are generally finding competitive pricing on 20- and 30-year level term policies, particularly in the preferred and preferred-plus health classes. Elevated interest rates benefit term pricing because carriers can earn more on the reserves they hold, which supports competitive rate offerings to consumers.
Indexed Universal Life Holds at Elevated Levels
Indexed universal life (IUL) insurance -- policies that credit interest based in part on equity index performance subject to caps and floors -- has been one of the most significant growth stories in life insurance over the past several years. LIMRA data shows IUL new annualized premium remaining near record levels in the first quarter of 2026, continuing a run of strong sales that began in 2020.
The sustained interest in IUL reflects consumer and advisor appetite for life insurance products that offer both death benefit protection and tax-advantaged accumulation potential with downside protection. The combination of a guaranteed floor (typically 0%) and participation in equity index gains has proven attractive in a period when both equity market volatility and interest rate uncertainty have been prominent concerns for consumers building long-term financial plans.
Regulators and consumer advocates have flagged concerns about IUL illustration practices -- specifically whether projected values in sales illustrations adequately reflect the realistic long-term impact of caps, spreads, and policy charges. The NAIC's ongoing work on life insurance illustration reform is expected to produce updated guidance in the second half of 2026, which may affect how IUL policies are presented to prospective buyers.
Whole Life Steady; Variable Life Faces Headwinds
Whole life insurance new premium is tracking in line with recent years, supported by demand from both the permanent protection and cash value accumulation markets. Mutual life insurers with strong dividend track records continue to attract buyers who prioritize guarantees and policy stability over potential upside.
Variable universal life (VUL), by contrast, has faced headwinds from equity market volatility. Buyers who want market-linked performance have largely preferred IUL's downside protection to VUL's direct equity subaccount exposure, and that preference has been reflected in relative sales trends over the past three years.
What This Means for Consumers Considering Life Insurance in 2026
The overall market picture is favorable for consumers shopping for life insurance in mid-2026. Term life rates are competitive, the range of permanent insurance options is broad, and underwriting technology has made the application process faster and less burdensome for healthy applicants. At the same time, the complexity of permanent products -- particularly IUL -- means consumers should fully understand how caps, floors, and charges affect long-term performance before selecting a policy based on illustrated projections.
Use our Life Insurance Calculator to estimate how much coverage you need, and see our Term vs. Whole Life guide for a plain-language comparison of the major policy types.