How Much Whole Life Insurance Was Purchased in 2018

Whole Life Insurance Purchases in 2018

In 2018, whole life insurance accounted for a meaningful share of the permanent life insurance market in the United States. Exact aggregate dollar amounts of whole life policies purchased that year vary depending on the source and how the data is reported, but industry filings and trade association analyses indicate that whole life remained one of the most widely sold permanent product categories. The total face amount of individual whole life policies issued and the annual premiums collected both reflected steady demand, even as term life insurance continued to dominate overall sales volume.

Key Industry Data Points

The American Council of Life Insurers (ACLI) and individual carrier annual reports provide the most reliable snapshots of 2018 whole life activity. Individual whole life new policy sales in 2018 totaled several billion dollars in face amount, though the precise figure depends on whether the count includes simplified issue, fully underwritten, and group conversion policies. Premiums collected on new and existing whole life contracts grew modestly, supported by older demographic buyers and a segment of younger purchasers drawn to the product's cash value accumulation and dividend features.

• Individual whole life remained the largest permanent life product category by premium volume.
• New policy face amounts reflected both large estate-planning policies and smaller policies issued through workplace benefits.
• Premium growth was driven by in-force policy continuation as much as by new sales.

What Drove 2018 Buying Behavior

Several factors shaped how much whole life insurance was purchased in 2018. Low interest rates throughout the decade had compressed returns on fixed-income alternatives, making the guaranteed growth component of whole life more attractive to certain buyers. Estate planning needs remained a consistent driver, as the federal estate tax exemption was set at $11.18 million for 2018, prompting high-net-worth individuals to use permanent policies for liquidity planning. At the same time, workplace benefit programs continued to issue significant volumes of group whole life coverage, which broadened the total number of policies sold even if individual policy sizes were modest.

Whole Life vs. Term in 2018

While term life insurance sold in far greater volume by number of policies, whole life represented a larger share of total premiums paid. Term policies are typically lower cost and shorter duration, whereas whole life contracts generate long-term premium revenue for carriers. The balance between the two product types in 2018 reflected a market where term dominated first-time and younger buyers, while whole life held strong among mid-career and affluent consumers focused on lifelong coverage and cash value building.

Limitations of Available Data

Exact dollar amounts of whole life insurance purchased in 2018 are not reported as a single, universally agreed-upon figure. Different industry sources aggregate data differently, and some include group and employer-sponsored policies while others focus strictly on individual contracts. The figures most commonly cited refer to total face amount issued or total premiums collected, and both metrics depend on the scope of the dataset. Readers seeking precise numbers should consult ACLI reports, LIMRA studies, or the annual statements of major carriers for the most granular breakdowns available.