According to a recent LIMRA article, life insurance continues to remain strong in consumers’ minds as the market continues to show a rise in annual premium since the COVID-19 pandemic. In 2021, record-high life insurance sales and policy count growth rates occurred that had not been seen in more than 40 years.

The press release, “What’s Ahead for the U.S. Individual Life Insurance Market in 2025?”, also states how LIMRA forecasts a continued growth in life insurance premium in 2025 and forecasting $15.9 billion in life insurance finishing off 2024.

Why is LIMRA so optimistic about life insurance sales this year? Per LIMRA, lower interest rates could relieve pressure on indexed universal life (IUL) and whole life (WL) sales. Inflation and unemployment are down, which are typically good for products, particularly term and whole life. Incomes are expected to increase at or slightly faster than inflation.

As a nationwide distributor of life insurance and annuity products, AIP Marketing Alliance, an Integrity Company, also believes life insurance is positioned for more growth in 2025. Protection has become a common goal for families whether their strategy involves retirement planning or leaving a legacy to their loved ones.

With that in mind, AIPMA is working on developing an IUL-focused section for our valued independent wholesalers and agents to assist them in positioning indexed universal life products inside this niche market. Slated to launch in Q1 2025, this resource will have whitepapers, videos, products, and many more tools designed to help sell IUL products. This page will be available through AIPMA’s Agent Tools and as an option on wholesalers’ customized recruiter portals.

LIMRA believes the interest rate environment has shifted more focus on IUL products. In 2024, LIMRA is forecasting IUL premium to increase 3% to 7%. Sales growth will continue in 2025, projected premium growth is expected between 2% and 6% in 2025.

For traditional life insurance products, LIMRA has high projections as well.

• Whole life – Interest rates have had a negative impact on recent WL sales. Rising interest rates have shifted WL sales towards products with longer premium payment periods, which have a lower annual premium. WL sales are projected to decline through the end of 2024. As the yield curve is expected to revert to normal, LIMRA expects WL sales to return to positive growth – between 1% and 5% - in 2025.
• Term life – After falling 5% in 2022, term sales quickly rebounded in 2023, although gains strongly reflect the experience of the top carriers. Digital platform expansions and more competitive pricing drove much of the growth. LIMRA is forecasting premium growth to be level through the rest of 2024, and low to moderate growth (between 1% and 5%) to resume in 2025.

“Whole life and term are often considered the core of the life insurance business. These products have represented more than 85% of the policies sold and a majority of the new premium collected each year,” said John Carroll, senior vice president and head of Life and Annuities, LIMRA and LOMA. “While recent higher interest rates have had a negative impact on whole life sales and inflation has likely dampened the term sales a bit, LIMRA expects both product lines to grow in 2025.”

With more than 70 contracted insurance carrier relationships, AIP Marketing Alliance can help independent agents nationwide get appointed, trained, and ready to sell life insurance products. We have online Accelerate training, a full case management department to assist with contracting and new business, and an experienced business development team to assist with illustrations and positioning life insurance with consumers.

Feel free to contact AIPMA at (800) 783-5206 Press #2 or email marketing@aipma.com to talk to our team about life insurance carriers, products, and options. You also can read the entire LIMRA article by clicking here.

For more than 40 years, AIP Marketing Alliance (AIPMA), an Integrity Company, serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. NOT AFFILIATED WITH OR ENDORSED BY THE GOVERNMENT OR THE MEDICARE PROGRAM.

AIP Marketing Alliance is committed to STRIVE in ’25 as we support our independent insurance wholesalers and agents. Visit our blog on aipma.com to stay informed on these upcoming launches and learn why wholesalers nationwide choose AIPMA as their distributor for selling life insurance, annuities, long-term care insurance, final expense, and much more. Ask about our lead services, myAIP CRM platform with customizable recruiter portal, and online tools/resources designed to grow your business. The difference is personal.

AIP Marketing Alliance, an Integrity Company, has developed this electronic communication for informational and educational use only. Be advised, AIP Marketing Alliance, Inc. does not provide legal advice, tax advice, or guidance on issues involving securities laws, insurance laws nor securities or insurance regulations. This material should not be relied on as providing any such advice or guidance to either agents or retail consumers. Within this communication, AIPMA shares links for usage as information only. This content should not be interpreted as solicitation to purchase life insurance, annuities, or other products or as advice designed to meet your clients’ specific needs. Content involving fiduciary, tax, or legal advice should be directed to your legal, tax, and financial professionals for specific advice or product recommendations. AIPMA will not accept any legal liability resulting from any use of 3rd party material(s).