Life Insurance Term Life Insurance Index: Q3 premiums drop by 1% Written by Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. | Reviewed by John McCormick John McCormick John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology. | Updated on: December 18, 2024 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Term life insurance new annualized premium totaled $727 million in the third quarter of 2024, dipping by 1% compared to the same three-month period last year, according to LIMRA’s U.S. Life Insurance Sales Survey released on December 5th. This follows a 1% rise in new annualized premium in the second quarter, which marked six consecutive quarters of year-over-year sales increases. New annualized premium is the yearly income expected from new life insurance policies sold during a specific period, calculated as if all premiums are paid annually. New annualized premium is a key metric for tracking growth and market trends in the life insurance industry, as insurers use it to assess sales performance, forecast revenue and gauge their competitiveness. While consumers feel more optimistic about the economy, many still feel the inflation pinch, which could be the reason term premium growth slowed. “Consumer sentiment data suggests more concern about the economy and inflation, which may have deterred some potential buyers,” says Karen Terry, assistant vice president and head of LIMRA’s Insurance Product Research. LIMRA is an organization specializing in research, consulting and professional development for the insurance and financial services industries. Despite these challenges, term life insurance remains a key player in the market, representing 19% of total life insurance sales in the third quarter. It ranks as the third most popular option based on annualized premium, following whole life and indexed universal life insurance. Even so, term life insurance is generally the best option for most people because of its affordability and simplicity. John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA, predicts that a steady economy with controlled inflation and stable unemployment could support strong sales through the end of the year. LOMA helps improve management and operations in the insurance and financial services industry through training, research, and sharing knowledge. LOMA and LIMRA work together under their parent company, LL Global, to provide research, training and resources that help improve the insurance and financial services industry. In other segments: Whole life: Q3 new premium was $1.3 billion, a 3% decrease from Q3 2023, holding 34% of the U.S. life insurance market. Indexed universal life: Q3 new premium reached $882 million, a 2% increase from Q3 2023, comprising 23% of the U.S. life insurance market. Variable universal life: Q3 new premium totaled $668 million, 41% higher than Q3 2023, and accounted for 17% of the U.S. individual life insurance market Fixed universal life: Q3 new premium reached $260 million, an 11% increase from Q3 2023, making up 7% of the U.S. life insurance market. Overall, total new annualized premium jumped 6% to $3.9 billion in the third quarter and LIMRA said it expects 2024 to mark the fourth year of record-high new premium collected. Understanding term life sales and premium trends LIMRA defines sales as the total new premium collected from policies sold during a specific period, with growth representing the percentage change compared to the same period in the previous year. LIMRA’s Retail Individual Life Insurance Sales Survey captures trends from 80% of the U.S. life insurance market, providing a detailed view of industry dynamics. Term life insurance remains an attractive choice for many consumers. It offers straightforward and affordable coverage that protects the financial well-being of loved ones if the insured dies. Policies can span decades and feature coverage limits that reach into the millions. The death benefit of a term life insurance policy can cover everyday expenses, mortgage payments, education costs, and other expenses. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Nupur GambhirManaging Editor | . .Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Related Articles Give yourself the gift of financial security this holiday season By Karen Terry Life insurance and autism: What you need to know By Satta Sarmah-Hightower The Santa Index 2024: St. Nick’s salary increases by almost 5% to $178,620 By Sarah Sharkey How much term life insurance costs By Huma Naeem The 10 largest life insurance companies By Chris Kissell How to get life insurance if you’re uninsurable By Penny Gusner ZIP Code Please enter valid ZIP See rates