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Variable Universal Life Sales Jump 24.5% in Q2: Why U.S. Buyers Are Returning to VUL Insurance
Variable universal life insurance is attracting renewed attention in the U.S. life insurance market. According to Wink data reported by ThinkAdvisor on September 11, 2026, variable universal life sales reached approximately $363.9 million in the second quarter, representing a 24.5% increase from the same period a year earlier and a 15.1% increase from the previous quarter. But another major industry dataset tells a slightly different story: LIMRA reported that VUL new annualized premium with excess premium increased 13% year over year in the second quarter, to approximately $811 million. Those numbers are not necessarily contradictory — they measure different aspects of the same market.
- Wink data reported by ThinkAdvisor showed VUL sales up 24.5% year over year in Q2 2026, reaching approximately $363.9 million
- LIMRA separately reported a 13% year-over-year increase in VUL new annualized premium with excess premium, to approximately $811 million
- VUL combines permanent life insurance with investment options whose performance can affect policy cash value
- Higher market exposure can create both upside potential and investment losses inside the policy
- Fees, insurance costs, surrender charges, and policy loans can materially affect long-term policy value
- A VUL policy can lapse if cash value is insufficient to cover ongoing policy charges
- VUL is generally a long-term financial product, not a short-term savings vehicle
The Four Numbers Behind This Story
Tap any figure to see exactly what it measures and where it came from.
Wink-Reported VUL Sales
Approximately $363.9 million in Q2 2026, based on issuer survey data compiled by Wink.
Figures reflect data reported on September 11, 2026 for Q2 2026. This is an educational data terminal, not investment or insurance advice.
Why VUL Sales Are Getting Attention
ThinkAdvisor reported on September 11, 2026 that variable universal life sales climbed 24.5% in the second quarter, according to issuer survey data compiled by Wink. That growth follows a 15.1% increase from the prior quarter, suggesting the momentum is not a one-quarter anomaly. VUL, however, is only one segment of the broader U.S. individual life insurance market, which also includes term life, whole life, and standard universal life. A rise in one product category does not mean American consumers are broadly abandoning other forms of coverage — it means demand for this specific, market-linked structure appears to be strengthening.
What This Article Is Not Saying
This is not a claim that VUL is superior to other insurance or investment products, that returns are guaranteed, or that rising sales mean VUL is right for any individual reader. Suitability depends on insurance needs, cost tolerance, investment risk tolerance, and the specific policy contract.
Why Two VUL Growth Numbers Can Both Be Correct
Wink's reported VUL sales figure of approximately $363.9 million, up 24.5% year over year and 15.1% quarter over quarter, comes from issuer survey data. LIMRA's figure — a 13% year-over-year increase in "new annualized premium with excess premium," to approximately $811 million — uses a different industry metric entirely. "Sales" in the life insurance industry can be measured through different premium methodologies, issuer surveys, and reporting conventions, so two reputable organizations can report different percentages and dollar figures for the same underlying product without either one being wrong. Neither figure should be averaged or blended into a single number. The consistent, defensible signal across both datasets is simple: VUL demand showed positive growth in the second quarter of 2026.
Compare the Reported Growth, Your Way
Switch between metrics, and toggle between percentage and dollar view. Reconstructed prior-period values are clearly labeled.
Reconstructed prior-period dollar figures are Smart Travel Finance's own estimates, derived from the reported growth percentages — not independently published by Wink or LIMRA. Data reflects figures reported on September 11, 2026.
What Is Variable Universal Life?
A VUL policy generally combines permanent life insurance, a death benefit, a cash value component, a menu of investment options, and — depending on the policy — flexible premium payments. The policy's investment options can cause cash value to rise or fall based on market performance, and the policy carries its own charges, including the cost of insurance and administrative fees. Some VUL contracts also permit policy loans against available cash value.
VUL vs. Whole Life vs. Term Life
Select a product to see how it approaches insurance, cash value, market risk, and flexibility.
| Dimension | Term Life |
|---|---|
| Life Insurance | Yes, for a set period |
| Cash Value | No |
| Market Investment Risk | None |
| Flexibility | Low |
| Often Considered When | Coverage is needed for a defined period, at the lowest initial cost |
General educational comparison. Actual terms, guarantees, and flexibility vary by insurer and policy. This is decision support, not individualized financial advice.
Why Would Some Buyers Choose VUL?
Consumers may be drawn to VUL for several reasons, none of which make it universally appropriate: a desire for permanent coverage paired with market-linked growth potential, interest in flexible premium structures, long-term estate or financial planning goals, or a preference for combining insurance and investment features within a single contract. Depending on the policy, some buyers may also value the potential for cash-value accumulation over time. None of this guarantees a particular outcome, and the right fit depends heavily on individual circumstances.
The Biggest VUL Risk: Market Performance
Because VUL cash value is tied to chosen investment options, a market decline can reduce policy value. As a simplified, hypothetical example: suppose a policy has $100,000 allocated to investment options. If the underlying investments decline 15%, the investment value could fall to approximately $85,000, before accounting for policy-specific charges and expenses. This is a mathematical illustration only, not a forecast — actual outcomes depend on the specific policy, the investment options selected, and applicable fees and insurance charges.
VUL Cost Breakdown
Fees vary by insurer and policy, but categories commonly disclosed in a VUL prospectus include:
- Premium-related charges
- Surrender charges (often declining over a set number of years)
- Mortality and expense (M&E) charges
- Cost of insurance, which can rise with age
- Administrative fees
- Underlying investment or fund expenses
- Optional rider costs
- Policy loan interest
There is no single standard VUL fee percentage. Always review the actual prospectus and policy illustration for a specific contract before assuming any cost figure.
Scenario Engine: How Assumptions Change the Picture
Using a $6,000 annual premium held for 20 years as a fixed educational baseline, see how three different assumption sets change the illustrative ending cash value.
Educational illustration — not an insurance quote or guaranteed projection. Actual VUL performance depends on the specific policy, investment options, fees, and real market conditions, which can differ significantly from any assumption shown here.
Why Policy Loans Can Change the Picture
Depending on the contract, a policyholder may be able to borrow against available policy value. Loan interest typically applies, and an outstanding loan reduces the value otherwise available inside the policy. When poor investment performance combines with an outstanding loan, the risk of lapse can increase. Tax consequences of loans, withdrawals, or a lapse can depend on individual circumstances and policy status — this article does not provide tax advice, and readers considering a loan against a VUL policy should consult a qualified tax or financial professional.
What Actually Erodes VUL Cash Value?
Tap a risk category to see a plain-language explanation.
What Happens If a VUL Policy Lapses?
A policy may lapse if there is insufficient cash value to cover ongoing policy charges. Contributing factors can include poor investment performance, high policy charges, insufficient premium payments, withdrawals, outstanding policy loans, and, depending on policy structure, rising insurance costs as the insured ages. Lapse provisions differ by contract, so not every policy behaves identically under the same stress scenario — but the underlying risk is one every VUL buyer should understand before purchase.
Visual Illustration: From Sales Headline to Consumer Decision
This original illustration is based on the themes discussed in this article and is for educational purposes only.
Illustrative graphic created for educational purposes. Not an official graphic from Wink, LIMRA, or any insurance carrier.
Why 2026 VUL Growth Does Not Mean Everyone Should Buy One
A product's sales growth does not prove it is appropriate for every consumer. Sales can rise for many reasons: changing market conditions, distribution and advisor activity, new product launches, shifting consumer sentiment, estate-planning demand, or renewed interest in market-linked products generally. "More people buying VUL" does not equal "VUL is the best financial product" for any given household.
What Should You Actually Do Next?
Answer 4 quick questions. This will not tell you to buy or avoid VUL — it points you toward what to research next.
What to Look for in a VUL Prospectus
Before purchasing, readers should review the investment options offered, all applicable fees, the surrender charge schedule, the cost of insurance structure, the death benefit design, premium requirements, lapse provisions, loan provisions, any rider charges, historical investment information, the policy illustration under multiple assumptions, and the issuing insurer's financial strength ratings. This is general education, not a recommendation for or against any specific policy.
What the 2026 Sales Data Really Tells Us
The strongest defensible conclusion from this quarter's data is not that VUL is "taking over" life insurance. It is that VUL showed meaningful growth in the second quarter of 2026, and multiple industry datasets point to positive momentum — even though the reported growth rates differ because Wink and LIMRA measure the market using different methodologies. That distinction matters more than either headline number on its own.
Bottom Line
The 24.5% VUL sales increase reported by Wink is a notable signal, but it should not be read as a blanket endorsement of variable universal life insurance. The more useful takeaway for consumers is that interest in market-linked life insurance is rising at a time when buyers are increasingly evaluating insurance and investment decisions together — which makes the underlying details, not the headline percentage, the part worth researching. Insurance decisions like this one are easier to evaluate as part of a broader financial plan rather than in isolation, and affordability over the long run ties directly into ongoing personal budgeting strategy. For anyone considering VUL, the headline sales growth should be the beginning of the research, not the reason to buy.
Frequently Asked Questions
What is variable universal life insurance?
Variable universal life is a form of permanent life insurance that combines a death benefit with cash value and investment options. Cash value can fluctuate based on the performance of the selected investment options and the policy's charges.
Why did VUL sales increase in Q2 2026?
Wink data reported by ThinkAdvisor showed VUL sales up 24.5% year over year in Q2. LIMRA separately reported a 13% increase in VUL new annualized premium with excess premium. The data indicates growing demand but does not establish a single cause.
Can you lose money with VUL?
Yes. Variable life insurance involves investment risk, and poor performance of the selected investment options can reduce cash value. Policy fees and insurance charges can further reduce value.
Are VUL returns guaranteed?
No. Investment performance is not guaranteed. Any guarantees within a particular policy depend on the contract and the financial strength of the issuing insurer.
What happens if a VUL policy runs out of cash value?
Depending on the policy's provisions, insufficient cash value may cause the policy to lapse. Policy loans, withdrawals, investment losses, and policy charges can all affect the amount available to cover expenses.
Is VUL better than term life insurance?
Not universally. Term life and VUL serve different purposes with different costs, risks, and structures. Consumers should compare their actual insurance need and total costs rather than choosing based on investment potential alone.
Should I buy VUL because sales increased?
No. Sales growth does not establish that a product is appropriate for any individual. The decision should depend on insurance needs, financial circumstances, investment risk tolerance, costs, and the specific policy contract.
Can You Read Past the Headline Sales Number?
Answer 6 quick questions about how you'd interpret a story like this one. This is a reflection tool to help you think through the article, not a rating of any insurer or product.
This tool reflects your own reasoning back to you for educational purposes only. It does not represent Wink, LIMRA, or any insurance carrier.
