Variable Life Insurance Market Report 2025

This Variable Life Insurance market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The variable life insurance market size has grown strongly in recent years. It will grow from $130.97 billion in 2024 to $138.44 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to investment component attraction, estate planning and wealth transfer, market participation and investment growth, flexibility in premium payments, tax advantages.

The variable life insurance market size is expected to see strong growth in the next few years. It will grow to $185.43 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to increasing awareness of financial planning, demographic shifts and inheritance planning, risk management and investment diversification, customization and tailored policies, retirement planning solutions. Major trends in the forecast period include adoption of predictive analytics for risk assessment, expansion of online sales and distribution channels, collaboration with insurtech startups, introduction of wellness and health incentives, enhancement of customer education and financial literacy.

The rapid expansion of the overall insurance industry is projected to drive the growth of the variable life insurance market. This growth in the insurance sector can be attributed to factors such as increased awareness of the necessity for insurance, a rising middle class, and economic development. As the insurance industry continues to grow, more individuals gain access to insurance products, including variable life insurance, which enables policyholders to invest a portion of their premiums in various investment options like stocks and bonds. For example, in December 2023, a report from the Office of Financial Research, a US-based government agency, indicated that the average premium for a homeowners' policy in Florida is around $6,000 per year, compared to the national average of $1,700 per year, with 6.8 million properties already facing rising insurance rates. Therefore, the rapid growth of the overall insurance industry is significantly fueling the expansion of the variable life insurance market.

Supportive government regulations and policies are anticipated to enhance the growth of the variable life insurance market in the future. Supportive government regulations and policies refer to favorable legal frameworks and official guidelines established by authorities to promote and facilitate specific industries or practices, thereby encouraging compliance, growth, and positive economic outcomes. These regulations can benefit variable life insurance by ensuring consumer protection, transparency in fees and expenses, and providing supervision and compliance standards. Additionally, these regulations address tax implications and product suitability, ultimately enhancing the trust and stability of variable life insurance. For instance, in February 2023, according to the Bureau of Labor Statistics (BLS), a US-based government agency, the Inflation Reduction Act, enacted in August 2022, extended a tax credit of up to $7,500 for purchasing new electric vehicles (EVs) until 2032 and, for the first time, introduced tax credits for buying used EVs. Furthermore, several states have established zero-emission vehicle (ZEV) programs mandating auto manufacturers to sell a specific quota of battery-electric or plug-in hybrid-electric vehicles and have enacted laws prohibiting the sale of new gas-powered vehicles by 2035. Consequently, favorable government regulations and policies are significantly contributing to the growth of the variable life insurance market.

Companies are actively introducing innovative life insurance products to fortify their market positions. Prudential Financial, Inc., a leading US-based insurance company, unveiled Prudential FlexGuard Life in November 2022. This innovative index-variable universal life insurance policy is tailored to meet evolving customer life insurance needs. Offering death benefit protection with flexible duration options and multiple avenues to enhance cash values, the policy includes the flexibility to access death benefits in case of chronic or terminal illness with the addition of a necessary rider. The adaptable nature of Prudential FlexGuard Life empowers customers to tailor their coverage according to their evolving needs and provides access to cash values when required, offering a unique opportunity to secure a legacy and avail living benefits.

Innovative developments in the variable life insurance market revolve around leveraging advanced technologies, notably digital platforms, to enhance customer accessibility and policy management. OneAmerica, a reputable US-based financial services mutual holding organization, launched a Variable Universal Life (VUL) insurance product in September 2022. This product amalgamates protective strategies with investment opportunities, empowering individuals to secure protection while accruing cash value through investments. The incorporation of digital platforms enables policyholders to seamlessly track investments, manage premiums, and make policy adjustments, reflecting OneAmerica's commitment to offering diverse options and a customer-centric approach.

In April 2023, Aristotle Capital Management, LLC, a US-based firm specializing in equity portfolio management for both institutional and individual clients globally, acquired Pacific Asset Management LLC for $20 billion. This acquisition significantly enhances Aristotle's capabilities in the credit investment sector, allowing for a wider range of investment options. It brings on board more than 50 professionals, including an experienced investment team led by Dominic Nolan, which improves their expertise and resources. Pacific Asset Management LLC, based in the UK, is dedicated to providing innovative and progressive asset management solutions tailored to the needs of advisers, institutions, investors, and asset owners.

Variable Life Insurance is a permanent life insurance type enabling policyholders to invest policy cash value in stocks, bonds, or mutual funds, suitable for those comfortable with market volatility and potentially higher premiums.

Variable life insurance primarily consists of fixed premium and variable universal life insurance. Fixed premiums entail regular payments to an insurance company for coverage within a specific policy. Key components include death benefits and additional add-on benefits. These insurance products serve various end-users, including agencies, brokers, bancassurance, and digital and direct channels.

The variable life insurance market research report is one of a series of new reports that provides variable life insurance market statistics, including variable life insurance industry global market size, regional shares, competitors with a variable life insurance market share, detailed variable life insurance market segments, market trends and opportunities, and any further data you may need to thrive in the variable life insurance industry. This variable life insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the variable life insurance market include Berkshire Hathaway Inc., Ping An Insurance (Group) Company of China Ltd., Allianz SE, AXA SA, Japan Post Holdings Co Ltd., MetLife Inc., Munich Reinsurance Group, Prudential plc, New York Life Insurance Company, American International Group Inc., Allstate Corporation, Nationwide Mutual Insurance Company, Swiss Reinsurance Company Ltd, Chubb Limited, Nippon Life Insurance Company, Zurich Insurance Group AG, Massachusetts Mutual Life Insurance Company, Northwestern Mutual Life Insurance Company, Aflac Incorporated, Lincoln National Corporation, Principal Financial Group Inc., Aviva plc, Manulife Financial Corporation, Protective Life Corporation, The Penn Mutual Life Insurance Company, AIA Group Limited, Ohio National Financial Services Inc., John Hancock Life Insurance Company (USA), Generali Assicurazioni SPA, Metropolitan Life Insurance Company.

North America was the largest region in the variable life insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global variable life insurance market report during the forecast period. The regions covered in the variable life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the variable life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The variable life insurance market includes revenues earned by entities by providing cash value, investment variety, and flexible premiums. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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