Life insurance sales experienced a positive upswing in 2024, with indexed life products emerging as a key driver, according to a recent report released by Wink, Inc.
Indexed Life Products Surge
Indexed life sales saw a robust performance in the fourth quarter of 2024, reaching $868.3 million. This represents a 15.9% increase compared to the previous quarter and a 9.1% rise year-over-year. Total indexed life sales for the year reached $3 billion. The fourth quarter capped off a record-setting year, surpassing the fourth quarter of 2023 by 9.1% and the 2023 annual record by 7%.
Indexed life sales encompass both indexed universal life (UL) and indexed whole life products. The strong performance of indexed life and annuity products in 2024 coincided with significant gains in the stock market.
National Life Group maintained its leading position in the indexed life market, holding a 17.4% market share. Pacific Life Companies, Transamerica, John Hancock, and Nationwide also secured top-five rankings, respectively. Life Insurance Company of the Southwest’s FlexLife was the top-selling indexed life insurance product across all channels during the fourth quarter. Cash accumulation was the primary pricing objective for 71.4% of sales during the quarter, with the average target premium at $13,285, nearly a 1% increase from the prior quarter.
Sheryl J. Moore, CEO of Moore Market Intelligence and Wink, Inc., commented, “The fourth quarter is nearly always the best quarter of the year for sales. It is not surprising that indexed life knocked it out of the park this quarter.”
Universal Life Sales Also Experience Growth
Total universal life sales for the fourth quarter of 2024 exceeded $1.3 billion, up 17.4% from the previous quarter. The year concluded with a total of $4.6 billion in sales. The universal life category includes fixed UL, indexed UL, and variable UL product sales. Pacific Life Companies led the overall universal life sales with an 11.91% market share. Life Insurance Company of the Southwest’s FlexLife, an indexed universal life product, was the No. 1 selling product for all universal life sales during the fourth quarter.
Non-variable universal life sales also showed gains, reaching $954.9 million in the fourth quarter, a 12.6% increase from the previous quarter, and a 7.2% rise year-over-year. Overall, non-variable universal life sales totaled $3.4 billion for the year. National Life Group maintained its leading position within the non-variable universal life market segment, with a 15.9% share. Life Insurance Company of the Southwest’s FlexLife was the top-selling product in this category.
Fixed and Variable Universal Life Performance
Fixed universal life (UL) sales for the fourth quarter were $88.9 million, reflecting a decrease of 11% compared to the prior quarter and a 7% decline year-over-year, with total sales for 2024 reaching $383 million. Nationwide held the No. 1 position in fixed universal life sales, with a 17% market share. John Hancock, Pacific Life Companies, Protective Life Companies, and Prudential rounded out the top five. Nationwide’s Nationwide CareMatters II was the leading fixed universal life insurance product for the quarter. The primary pricing objective for sales was the No-Lapse Guarantee, representing 37.7% of sales. The average fixed UL target premium for the quarter was $6,664, down more than 14% from the previous quarter.
Variable universal life sales increased significantly in the fourth quarter, reaching $374.7 million, a 31.6% jump compared with the previous quarter, bringing the year’s total to $1.2 billion. Prudential retained the top spot in variable universal life sales with a 35.3% market share, followed by Pacific Life Companies, John Hancock, RiverSource Life, and Nationwide. Pruco Life’s VUL Protector was the top-selling variable universal life product for the fourth consecutive quarter. Cash accumulation was the primary sales objective in this category at 51.8%. The average variable universal life target premium for the quarter was $24,291, up more than 21% from the prior quarter.
“Variable Universal Life sales fare better when the market is increasing,” Moore said. “In addition, VUL sales were not that great last quarter. The big fourth quarter push saved the day.”
Whole and Term Life Sales
Whole life sales in the fourth quarter totaled $1.2 billion, up 20.4% compared to the previous quarter, and 4.5% higher than the same period last year. Total whole life sales for 2024 reached $4.3 billion. Final expense was the primary pricing objective, accounting for 59.9% of sales. The average premium per whole life policy was $3,946, an increase of almost 8% from the prior quarter.
Term life sales for the fourth quarter were $603.9 million, with a less than 1% increase over the previous quarter. Total term life sales for 2024 were $2.4 billion. Prudential led in term life sales with a 5.7% market share, followed by Pacific Life Companies, Massachusetts Mutual Life Companies, Corebridge Financial, and Protective Life Companies. Pruco Life’s Term Essential 20 was the top-selling term life insurance product for the quarter. The average annual premium per term life policy for the quarter was $2,350, a nearly 3% decrease from the prior quarter.
