Variable Universal Life Insurance Sales Surge 15% in Q1 2026: What the Wink Data Means for Consumers
Variable universal life (VUL) insurance sales jumped 15.1% in the first quarter of 2026 compared to the same period last year, according to new data from Wink, Inc. The surge — to $316.1 million in Q1 premium — signals a significant shift in how Americans are approaching permanent life insurance in an improving stock market environment.
“The market has been on the uptick since the beginning of April,” said Sheryl Moore, CEO of Wink, Inc. and Moore Market Intelligence. “This translates to improved sales of variable UL.” The Q1 numbers follow a strong fourth quarter of 2025, when VUL sales rose 4.3% year-over-year and 22.4% over Q3, suggesting the momentum is building rather than spiking.
What Is Variable Universal Life Insurance?
VUL is a type of permanent life insurance that combines a death benefit with an investment component. Unlike traditional whole life — where the insurer manages the cash value — VUL policyholders direct their cash value into sub-accounts that function like mutual funds, typically offering a range of stock, bond, and money market options.
This means the policy’s cash value can grow faster when markets perform well — but it can also decline during downturns. The flexibility is the draw: policyholders can adjust premium payments, death benefits, and investment allocations as their financial situation changes. Riders can be added for long-term care, critical illness, or guaranteed death benefits.
Q1 2026 VUL Sales: The Numbers
Wink’s Q1 2026 Sales & Market Report reveals a VUL market dominated by a handful of major carriers. Here’s how the top five ranked:
| Rank | Carrier | Market Share |
|---|---|---|
| 1 | Prudential (Pruco Life) | 36.2% |
| 2 | Pacific Life Companies | — |
| 3 | Nationwide | — |
| 4 | RiverSource Life | — |
| 5 | John Hancock | — |
Prudential’s dominance is striking — with over a third of the entire VUL market, its PruLife Custom Premier II was the top-selling VUL product across all distribution channels. The average VUL target premium was $23,161 for the quarter, down nearly 10% from Q4 2025, suggesting more policies are being written at slightly lower face amounts.
Cash accumulation was the primary pricing objective for 63.4% of VUL sales — meaning most buyers are using these policies as wealth-building tools first, with the death benefit as a secondary feature. This aligns with the improving stock market: when equities rise, VUL becomes more attractive relative to fixed-rate products.
The Broader Life Insurance Landscape: Wink Q1 2026 Data
VUL’s growth stands out against a mixed quarter for the industry. Total life insurance sales across all product lines reached $2.9 billion in Q1, up 8.1% year-over-year but down 9.7% from Q4 2025. Here’s how each product category performed:
| Product Type | Q1 2026 Sales | YoY Change | QoQ Change |
|---|---|---|---|
| Variable Universal Life | $316.1M | +15.1% | -19.1% |
| Indexed Life (IUL + IWL) | $789.5M | +2.8% | -14.0% |
| Whole Life | $1.2B+ | +22.6% | -3.6% |
| Term Life | $521.8M | -9.7% | -7.6% |
| Fixed Universal Life | $65.2M | -18.0% | -25.9% |
Whole life was the standout performer by dollar volume, surging 22.6% year-over-year — driven largely by final expense policies, which accounted for 72.4% of whole life sales. Term life, by contrast, declined nearly 10% from Q1 2025, continuing a trend of consumers shifting toward permanent products with living benefits.
Fixed universal life — the traditional UL product without market-linked returns — continued its long decline, falling 18% year-over-year to just $65.2 million. “Universal life sales have never been this low,” Moore noted. “It is just getting more difficult to justify the sales of these products, when indexed life has a relatively stronger value proposition.”
Why VUL Is Gaining Momentum Now
Several factors are converging to drive VUL interest in 2026:
- Stock market recovery: After a volatile 2025, equity markets have stabilized and trended upward since April 2026, making the investment component of VUL more appealing.
- Interest rate environment: With fixed-income yields still relatively attractive but uncertain, VUL offers diversification across asset classes within a single policy structure.
- Tax-advantaged growth: Cash value grows tax-deferred, and policy loans can be taken tax-free — a feature that gains value as investors seek tax-efficient vehicles.
- Flexibility demand: Post-pandemic, consumers increasingly want financial products they can adjust as circumstances change, rather than rigid, set-it-and-forget-it contracts.
- Advisor push: Financial advisors are increasingly positioning VUL as part of holistic wealth management strategies, not just insurance sales.
Who Should Consider VUL — and Who Shouldn’t
VUL is not for everyone. It’s best suited for:
- High-income earners who have maxed out 401(k) and IRA contributions and want additional tax-advantaged growth
- Investors comfortable with market risk who understand that cash value can decline in down years
- Those needing permanent coverage who also want the potential for higher returns than whole or indexed universal life
- Business owners and executives using life insurance as part of buy-sell agreements or executive compensation plans
VUL is generally not ideal for:
- Risk-averse buyers who need guaranteed cash value growth — whole life or indexed universal life may be better fits
- Those seeking the lowest possible premium — term life provides pure death benefit protection at a fraction of the cost
- Short-term coverage needs — VUL is designed as a long-term product; surrendering early can trigger significant costs
Carrier Rankings Across All Life Product Lines
Prudential’s dominance extends beyond VUL. The carrier ranked No. 1 in overall life insurance sales (5.6% market share), No. 1 in all universal life products (11.2% share), and No. 1 in term life sales (6.5% share). Other notable rankings from Wink’s Q1 report:
- Indexed life: National Life Group held the top spot at 14.7% market share, with Pacific Life, John Hancock, Nationwide, and Fidelity & Guaranty Life rounding out the top five
- Fixed UL: Nationwide led with 22.8% share, followed by Pacific Life, John Hancock, Protective Life, and Penn Mutual
- Whole life: Final expense dominated at 72.4% of sales, with an average premium of $3,860 per policy
- Term life: Protective Life’s Classic Choice Term 20 was the top-selling product; average annual premium was $1,905
What This Means for Life Insurance Shoppers in 2026
The Wink data paints a clear picture: Americans are increasingly viewing life insurance as a financial asset, not just a safety net. The 22.6% surge in whole life — driven by final expense — shows that seniors and near-retirees are locking in coverage for end-of-life costs. The 15.1% VUL jump shows that higher-net-worth buyers are using insurance as an investment vehicle. And the decline in term life suggests that pure death-benefit products are losing ground to policies that offer living benefits and cash value growth.
For consumers comparing options, the key takeaway is that 2026 offers more choice than ever — but also more complexity. A VUL policy that performs well in a bull market can underperform in a downturn. An indexed universal life policy offers downside protection but caps upside. Term life remains the most affordable way to protect your family, but it builds no cash value.
If you’re evaluating permanent life insurance in 2026, the Wink rankings provide a useful starting point for carrier research. Prudential, Pacific Life, Nationwide, and John Hancock appear consistently across multiple product categories — suggesting broad financial strength and product depth. But the right policy depends on your specific age, health, financial goals, and risk tolerance. Comparing quotes from multiple carriers is essential; rates for the same coverage can vary by 50% or more between insurers.
Related Resources
- AM Best Financial Strength Ratings — Check any carrier’s financial strength before buying a permanent policy
- NAIC Consumer Resources — State insurance department contacts and consumer guides
- IRS Publication 525 — Taxable and Nontaxable Income — Understand the tax treatment of life insurance cash value and loans
Frequently Asked Questions
What is variable universal life (VUL) insurance?
Variable universal life insurance is a permanent life insurance policy that combines a death benefit with an investment component. Policyholders allocate their cash value among sub-accounts similar to mutual funds, giving them the potential for market-based growth — but also exposing them to market risk.
How much did VUL sales grow in Q1 2026?
According to Wink, Inc.’s Q1 2026 Sales & Market Report, VUL sales reached $316.1 million, up 15.1% compared to Q1 2025. The growth follows a strong Q4 2025, suggesting sustained momentum rather than a one-time spike.
Which company sells the most VUL insurance?
Prudential (through its Pruco Life subsidiary) is the dominant VUL carrier with a 36.2% market share in Q1 2026. Its PruLife Custom Premier II was the top-selling VUL product across all channels. Pacific Life, Nationwide, RiverSource Life, and John Hancock complete the top five.
Is VUL better than whole life or term life?
It depends on your goals. VUL offers market-linked growth potential that whole life doesn’t, but with more risk. Term life is far cheaper for pure death benefit protection but builds no cash value. VUL is best for high-income earners who want tax-advantaged investment growth alongside permanent coverage.
What are the risks of variable universal life insurance?
The primary risk is market exposure: if the sub-accounts you select perform poorly, your cash value can decline — and you may need to pay additional premiums to keep the policy in force. VUL policies also have higher fees than term or whole life, including mortality charges, administrative fees, and fund management expenses.
How does the Wink sales data help consumers?
Wink’s quarterly reports show which carriers and products are leading the market — a useful proxy for carrier stability, product competitiveness, and advisor preference. Carriers that consistently rank in the top five across multiple product lines (like Prudential and Pacific Life) tend to have strong financial ratings and broad product suites.
Why are whole life sales up 22.6% while term life is declining?
Whole life’s growth is driven primarily by final expense policies (72.4% of sales), reflecting demand from seniors securing coverage for funeral and burial costs. Term life’s decline may reflect a consumer shift toward permanent products that offer living benefits and cash value accumulation — features term policies lack.
If you’re comparing life insurance options, our Best Life Insurance Companies of 2026 guide ranks the top carriers by price, financial strength, and customer satisfaction. For term-specific comparisons, see our 20-Year Term Life Insurance Rates by Age guide. And if you’re considering permanent coverage, our Whole Life Insurance Cost Guide and Term vs. Whole vs. Universal comparison break down the trade-offs.
Get personalized quotes in minutes: Compare VUL, IUL, whole life, and term life rates from 40+ top-rated carriers at LifeQuotesWeb.com. No medical exam required for initial quotes, and our licensed agents can help you navigate the trade-offs between policy types.
