Variable Life Insurance Market Report 2026

The variable life insurance market size has grown strongly in recent years. It will grow from $123.74 billion in 2025 to $130.6 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to growth in long-term wealth planning needs, expansion of equity and mutual fund participation, rising consumer awareness of investment-linked insurance, availability of diversified financial instruments, development of regulated insurance frameworks.

The variable life insurance market size is expected to see strong growth in the next few years. It will grow to $168.68 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing adoption of robo-advisory insurance platforms, rising demand for flexible premium products, expansion of digitally distributed life insurance, growing focus on personalized financial planning, increasing integration of real-time investment monitoring. Major trends in the forecast period include increasing customization of investment-linked policies, rising demand for digital policy management tools, growing focus on portfolio transparency, expansion of hybrid investment-insurance products, enhanced use of data analytics for risk profiling.

The rapid growth of the overall insurance industry is expected to propel the growth of the variable life insurance market. Growth in the insurance industry can be attributed to factors such as increasing awareness of insurance needs, a growing middle class, and overall economic development. As the insurance industry expands, more individuals gain access to insurance products, including variable life insurance, which allows policyholders to allocate a portion of their premiums into diverse investment options, such as stocks and bonds. For instance, in December 2023, the Office of Financial Research, a US-based government agency, reported that the average premium for a homeowners' policy in Florida is approximately $6,000 per year, compared to the national average of $1,700 per year, with 6.8 million properties experiencing rising insurance rates. Therefore, the rapid growth of the overall insurance industry is significantly contributing to the growth of the variable life insurance market.

Companies in the variable life insurance market are leveraging technological advancements, such as digital-enabled advisory variable universal life platforms, to enhance customer engagement, streamline sales processes, and enable personalized policy management. Digital-enabled advisory variable universal life platforms integrate variable life insurance products with digital infrastructure, supporting electronic applications, real-time workflow management, and seamless data capture for both advisors and clients. For instance, in April 2024, Protective Life Insurance Company, a US-based subsidiary of Dai-ichi Life Holdings, launched Protective Investors Benefit Advisory VUL, a digital-enabled variable universal life insurance solution. The platform integrates with digital sales systems and supports fee-based Registered Investment Advisor channels, offering electronic data and signature capture, flexible premium structures, and variable investment options for tax-deferred cash value growth. This solution improves operational efficiency, accelerates policy issuance, and enhances the digital advisory experience in the variable life insurance market.

In April 2023, Aristotle Capital Management, LLC, a US-based company specializing in equity portfolio management, acquired Pacific Asset Management LLC for $20 billion. This acquisition strengthened Aristotle’s credit investment capabilities and expanded its range of investment offerings. The deal added over 50 professionals, including a seasoned investment team led by Dominic Nolan, enhancing expertise and resources. Pacific Asset Management LLC, a UK-based firm, focuses on providing innovative and progressive asset management solutions tailored to advisers, institutions, investors, and asset owners.

Major companies operating in the variable life insurance market are Berkshire Hathaway Inc, Ping An Insurance Group Company of China Ltd, Allianz SE, AXA SA, Japan Post Holdings Co Ltd, MetLife Inc, Prudential plc, New York Life Insurance Company, American International Group Inc, Allstate Corporation, Nationwide Mutual Insurance Company, Nippon Life Insurance Company, Massachusetts Mutual Life Insurance Company, Northwestern Mutual Life Insurance Company, 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 2025. 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, South East Asia, 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, Taiwan, 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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