Equity Indexed Life insurance

Global Equity Indexed Life insurance Market to Reach US$9.0 Billion by 2030

The global market for Equity Indexed Life insurance estimated at US$4.4 Billion in the year 2024, is expected to reach US$9.0 Billion by 2030, growing at a CAGR of 12.6% over the analysis period 2024-2030. Whole Life Insurance, one of the segments analyzed in the report, is expected to record a 11.2% CAGR and reach US$3.5 Billion by the end of the analysis period. Growth in the Universal Life Insurance segment is estimated at 10.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.2 Billion While China is Forecast to Grow at 16.6% CAGR

The Equity Indexed Life insurance market in the U.S. is estimated at US$1.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.9 Billion by the year 2030 trailing a CAGR of 16.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 9.3% and 11.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.9% CAGR.

Global Equity Indexed Life Insurance Market – Key Trends & Drivers Summarized

How Is Product Structuring Evolving to Balance Market Participation and Risk Protection?
Equity Indexed Life Insurance (EILI), also known as Indexed Universal Life (IUL), has undergone significant evolution in its structural design, aligning policyholder interests with dynamic financial markets while maintaining fundamental death benefit coverage. Unlike traditional whole life or variable life policies, EILI products are built around index-linked crediting strategies—typically based on benchmark indices such as the S&P 500, EURO STOXX 50, or MSCI World Index—without direct participation in market equities. These structures incorporate caps, participation rates, and floors to define the return potential in each policy year, offering upside potential from index growth while shielding policyholders from market downturns through zero-loss floors.

Over the past decade, insurance carriers have diversified their crediting strategies beyond fixed-rate and point-to-point models to include volatility-controlled indices, multi-index blends, and performance-trigger strategies. These enhancements are driven by both consumer demand for stronger accumulation potential and insurer needs to manage hedging costs in low interest rate environments. Technology-led product innovation is allowing policyholders to dynamically reallocate their index-linked accounts annually, selecting strategies based on personal risk tolerance, performance history, or economic outlook. Additionally, insurers are offering more transparency around historical index returns, cost-of-insurance charges, and potential policy value scenarios, addressing longstanding criticism about policy complexity and opaque fee structures.

What Types of Buyers Are Shaping Market Demand Across Segments?
The appeal of equity indexed life insurance spans a wide spectrum of policyholders, from conservative middle-income earners seeking long-term savings vehicles with downside protection to high-net-worth individuals (HNWIs) using the product as part of advanced estate and tax planning strategies. Among mass affluent buyers, EILI is increasingly positioned as a retirement income planning tool, where cash value accumulation can be tapped tax-efficiently through policy loans and withdrawals. This demographic is particularly responsive to policies featuring loan protection riders, income guarantee riders, and living benefits such as chronic illness and critical care coverage. In employer-sponsored group life plans and executive bonus arrangements, EILI products are gaining popularity for their ability to combine death benefit coverage with a tax-advantaged growth mechanism.

High-net-worth individuals, on the other hand, are leveraging EILI to create legacy funding vehicles, supplement deferred compensation plans, and manage estate tax exposures through irrevocable life insurance trusts (ILITs). These buyers often opt for premium-financed structures or overfunded policies designed to maximize cash accumulation while minimizing insurance costs. Wealth advisors and tax attorneys are increasingly including EILI in multi-asset wealth preservation strategies that balance liquidity, tax deferral, and longevity protection. Meanwhile, younger buyers in their 30s and 40s are entering the EILI space driven by an interest in hybrid investment-insurance solutions, particularly in geographies where traditional pensions are declining and self-directed retirement planning is on the rise.

Where Are Distribution and Digitalization Reshaping the Market Landscape?
Distribution channels for equity indexed life insurance are undergoing transformation, driven by regulatory shifts, consumer behavior changes, and the digitalization of financial services. Traditionally distributed through insurance agents and independent financial advisors, EILI products are now increasingly being marketed through digital platforms, robo-advisors, and hybrid advisory firms that combine digital onboarding with personalized consultation. Online comparison engines and digital illustrations are helping consumers better understand policy mechanics, including hypothetical index return scenarios and fee impacts. Carriers are investing in customer education tools that demystify participation rates, spread charges, and illustrated cash surrender values over time.

From a regulatory perspective, the introduction of fiduciary standards under frameworks like the U.S. Department of Labor`s PTE 2020-02 and the NAIC’s best interest rule are reshaping how agents recommend and sell EILI products. Distributors are being held to higher standards of disclosure, documentation, and suitability assessment—particularly when indexed life policies are used in income replacement, retirement, or estate planning contexts. This has prompted insurance companies to roll out compliance-friendly digital platforms, incorporating automated suitability checks, audit trails, and client acknowledgment modules. Furthermore, direct-to-consumer innovations, including mobile apps that simulate policy performance or calculate personalized premiums, are gradually making inroads among younger tech-savvy demographics, though agent-led sales still dominate the higher-premium end of the market.

What Is Driving the Continued Expansion of the Global Equity Indexed Life Insurance Market?
The growth in the equity indexed life insurance market is driven by several factors that reflect both structural shifts in financial planning behavior and macroeconomic tailwinds. One of the most prominent growth drivers is the persistent low interest rate environment that has eroded the appeal of traditional fixed income-based life insurance products. In contrast, EILI offers a compelling alternative by linking policy growth to equities, albeit with protective mechanisms that appeal to conservative savers. This appeal is further magnified in volatile markets, where policyholders seek products that can capture some upside while providing reassurance against downside losses.

Another powerful growth enabler is the rising global focus on personal financial planning amid weakening government-sponsored retirement systems and growing longevity risk. In developed economies like the United States, Japan, and the EU, aging populations are creating demand for flexible insurance products that can provide lifelong coverage while supplementing retirement income. In emerging markets, the rising middle class is fueling demand for long-term savings instruments with aspirational value and multi-generational benefits—characteristics well-aligned with EILI. Additionally, evolving tax codes and estate planning needs are prompting both individuals and advisors to seek asset classes with preferential tax treatment, and the tax-deferred growth and tax-free loan provisions of EILI policies offer a strong incentive in this regard.

The role of technology is also amplifying market reach and operational scalability. Insurtech platforms are enabling quicker policy underwriting using AI-powered risk models, e-signatures, and real-time health data integration from wearable devices. This acceleration of underwriting timelines has expanded access to previously underserved demographics, especially in remote or digitally native populations. Furthermore, increased transparency, better disclosure norms, and improved client education around indexed crediting mechanisms are reducing historical barriers to adoption. As financial literacy grows and consumers take a more active role in crafting diversified personal finance strategies, equity indexed life insurance is increasingly viewed not merely as a protection tool, but as a long-term, dual-purpose asset class with growing relevance across geographies and economic tiers.

SCOPE OF STUDY:

The report analyzes the Equity Indexed Life insurance market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Whole Life Insurance, Universal Life Insurance, Variable Universal Life Insurance, Indexed Universal Life Insurance, Other Life Insurance Types); Mode (Online Mode, Offline Mode); Distribution Channel (Insurance Companies Distribution Channel, Agency & Brokers Distribution Channel, Banks Distribution Channel)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 47 Featured) -

• Aflac Incorporated
• AIA Group Limited
• Allianz SE
• American International Group Inc. (AIG)
• Assicurazioni Generali S.p.A.
• Aviva plc
• AXA Equitable Life Insurance Company
• Bajaj Allianz Life Insurance Company Ltd.
• Berkshire Hathaway Inc.
• Chubb Limited
• China Pacific Insurance (Group) Co. Ltd.
• Guardian Life Insurance Company of America
• John Hancock Financial
• Manulife Financial Corporation
• Massachusetts Mutual Life Insurance Co.
• MetLife Inc.
• Munich Reinsurance America Inc.
• Mutual of Omaha Insurance Company
• National Life Group
• New York Life Insurance Company
• Pacific Life Insurance Company
• Penn Mutual Life Insurance Company
• Ping An Insurance Group Co. of China Ltd.
• Prudential Financial Inc.
• Swiss Reinsurance Company Ltd.
• Zurich Insurance Group AG

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