Workplace life, disability, and supplemental health insurance products in the U.S. recorded a fourth consecutive year of growth in 2024-2025, according to LIMRA’s latest workplace benefits sales survey.
Term life insurance products, which represent over 80% of workplace life insurance sales, rose 13% year-over-year, while permanent products declined 1%.
Total workplace life insurance new premium reached a record $4.5 bn in 2024, reflecting an 8% increase from the previous year.
In Q4 alone, new premium exceeded $925 mn, up 10% compared to the same period in 2023. Although the number of employer groups sold dropped 1%, the number of participants grew 9% during the quarter.
7 in 10 U.S. life insurers reported year-over-year growth in life insurance sales.
Patrick Leary, corporate vice president and head of LIMRA workplace benefits research, said many employers used their benefits offerings to attract and retain workers in a competitive labor market.
LIMRA data indicated that over 60% of employees were at least somewhat more likely to remain with their employer due to their benefits package.
Throughout 2024, employers continued to use their workplace benefits programs to compete for talent in a tight job market
Patrick Leary, corporate vice president and head of LIMRA workplace benefits research
“Our research finds more than 60% of workers are at least somewhat more inclined to stay with their employer because of their benefits package so it is not surprising that workplace benefits sales remained strong,” said Patrick Leary.
- Disability insurance also saw growth. New premium reached $1.1 bn in the fourth quarter of 2024, up 12% compared to the same period a year earlier.
- Short-term disability premiums increased 6%, and long-term disability premiums rose 20% in that period. For the full year, disability insurance new premium totaled $4.2 bn, a 2% increase.
- Short-term disability premiums declined 3%, while long-term disability premiums increased 7%.
The top 10 disability insurers accounted for 75% of new premium and posted a combined 3% increase, contributing to the overall growth.
Supplemental health insurance new premium reached $686 mn in the fourth quarter of 2024, representing a 2% decline from the same period in 2023.
This category includes products such as critical illness, accident, cancer, hospital indemnity, and gap insurance.
Despite the quarterly decline, strong performance earlier in the year led to a total of $3.3 bn in new premium for 2024, up 8%. LIMRA reported that three-quarters of carriers in this segment saw gains.
Retail annuity sales reached over $100 bn in every quarter of 2024 for the first time. Total annual sales rose 12% to $432.6 bn, setting a new record, according to LIMRA.
