Life Insurance News Update June 25 2026: VUL Sales Surge 15%, STOLI Ruled Invalid, Premium-Financed IUL Under Fire, and Globe Life Hits New High

The life insurance industry entered the final week of June 2026 with a flurry of activity spanning product innovation, regulatory rulings, market movements, and critical industry analysis. Variable universal life sales posted their strongest quarterly gain in years, a federal appeals court dealt another blow to stranger-originated life insurance arrangements, and one of the industry’s most respected analysts declared that premium-financed indexed universal life is “failing” under the weight of rising interest rates and falling policy caps. Meanwhile, Globe Life and MetLife both touched new 52-week highs, Lincoln Financial announced executive leadership transitions, and Prismic Life completed an oversubscribed capital raise that signals continued insurtech momentum.

In this June 25 roundup, we cover seven key developments: Wink’s blockbuster Q1 variable universal life sales data, the Third Circuit’s decisive STOLI ruling, Valmark CEO Larry Rybka’s detailed critique of premium-financed IUL, Lincoln Financial’s leadership transition, MetLife’s product expansion and stock milestone, Prismic Life’s capital markets success, and Globe Life’s continued share price strength.

1. VUL Sales Skyrocket 15.1% as Wink Reports Q1 Variable Universal Life Surge

Variable universal life insurance sales surged 15.1% in the first quarter of 2026 compared to the same period last year, according to the latest Wink Inc. Sales & Market Report. Total VUL sales reached $316.1 million for the quarter, marking the product line’s strongest year-over-year performance in recent memory. While sales were down 19.1% sequentially from Q4 2025, this is consistent with normal seasonal patterns — Q1 is traditionally the slowest quarter for life insurance sales, and the end of the year typically sees the heaviest volume.

“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 comment suggests that Q2 2026 data, when released, could show even stronger performance as the market momentum carries through the spring and summer months.

Prudential retained its No. 1 ranking in VUL sales with a commanding 36.2% market share. Pacific Life Companies, Nationwide, RiverSource Life, and John Hancock rounded out the top five, respectively. Pruco Life’s PruLife Custom Premier II was the No. 1 selling VUL product across all distribution channels for the quarter. The top primary pricing objective for VUL sales was cash accumulation, capturing 63.4% of sales, while the average VUL target premium was $23,161 — a decline of nearly 10% from the prior quarter.

VUL is a permanent life insurance policy that combines a death benefit with an investment component, offering policyholders the flexibility to allocate premiums among various sub-accounts tied to market performance. Policies can be customized with riders to provide coverage for long-term care and other needs, making the product particularly attractive to consumers seeking both protection and growth potential in a rising market environment.

2. Third Circuit Court of Appeals Rejects $8 Million in STOLI Investor Payouts — Major Win for Lincoln National

A federal appeals court upheld a lower court ruling last week that voided two life insurance policies with a combined face value of $8 million, finding they were illegal stranger-originated life insurance arrangements under New Jersey law. The Court of Appeals for the Third Circuit affirmed summary judgment in favor of Lincoln National Life Insurance Co., rejecting claims by Retirement Value LLC, which sought to collect death benefits after the insured, Haya Majerovic, died in 2019.

The dispute centered on two policies originally issued in 2007 by Jefferson Pilot Life Insurance Co., a predecessor to Lincoln. The policies insured Majerovic’s life for a total of $8 million and were ultimately purchased by Retirement Value after a series of transfers. Lincoln filed suit in 2021 seeking a declaration that the policies were void from inception because they lacked a valid insurable interest.

According to court documents, Majerovic’s son entered into an agreement with investors in 2007 under which he would obtain life insurance on his mother’s life while the investors funded all premium payments. The investors — identified as two religious organizations — were entitled to 90% of the policy’s value, while the family would receive just 10%. The Majerovic family never paid any premiums on the policies, the court found.

Writing for the three-judge panel, Judge Luis Felipe Restrepo concluded that “the investors had no insurable interest in the life of the insured but yet were the intended beneficiaries of her life insurance policies.” The ruling represents another victory for insurers challenging investor-backed life insurance arrangements that courts have increasingly scrutinized as illegal wagering contracts lacking a legitimate insurable interest. STOLI arrangements have been consistently held to violate public policy under New Jersey law and in many other jurisdictions nationwide.

3. Valmark CEO Larry Rybka Declares Premium-Financed IUL Is Failing — “The Math No Longer Works”

In a detailed and forcefully argued analysis published by InsuranceNewsNet, Larry J. Rybka, CEO of the Valmark Financial Group and a respected industry voice with $70 billion in in-force life insurance under management, declared that premium-financed indexed universal life insurance is structurally failing. The piece directly responds to defenders of premium financing who argue that failures reflect poor execution rather than a flawed concept.

“The widespread failure of these plans is not an execution problem caused by a few bad actors — it is the natural and foreseeable result of an unstable financial design,” Rybka wrote. He argues that premium-financed IUL is fundamentally different from standalone IUL products, which can serve legitimate planning purposes when used appropriately. The problem, he says, is leverage layered on top of an already complex and risk-sensitive product.

Rybka identifies six key structural problems with premium-financed IUL:

1. The death of arbitrage: Premium financing depends on positive arbitrage — net policy returns must exceed borrowing costs. With IUL caps reduced from the mid-teens to roughly 7–8%, and S&P 500 returns translating to just 3.82–4.30% inside capped, dividend-free IUL, borrowing costs above 7% turn illustrated arbitrage into negative leverage.
2. Illiquid asset risk: The financing pitch targets business owners and real estate investors with 80–90% of net worth in illiquid assets. When programs fail, collateral must be tapped at the worst possible time — a risk-multiplication trap.
3. Zero-return proprietary indexes: Promoters shifted to opaque proprietary indexes after S&P 500 caps fell. During the bull markets of 2023–2024, the S&P 500 rose 56% combined, while some proprietary indexes credited just 1–3% or even 0%.
4. Compounding debt hole: When policies underperform, clients are told to “be patient” — but loan interest keeps compounding, bank demands more collateral, and required collateral often rises to four to five times originally illustrated amounts.
5. Agent chargeback risk: Lapsed policies can trigger commission clawbacks of hundreds of thousands of dollars, and many E&O policies now exclude premium-financing claims.
6. Systemic litigation: At least three dozen premium-financed IUL cases are in active litigation, with many more settled before filing. Courts are “increasingly stepping in where state insurance regulation has failed,” Rybka writes.

4. Lincoln Financial Announces Executive Leadership Transitions

Lincoln Financial Group announced key executive leadership transitions, signaling the company’s strategic direction for the remainder of 2026. While the specific details of the appointments were not publicly detailed in newswire reports, leadership transitions at one of the nation’s largest life insurers are significant given Lincoln’s substantial market presence across life insurance, annuities, and retirement planning services.

Lincoln Financial has been a major force in the life insurance industry, ranking among the top carriers for both term and universal life sales. The company’s strategic direction under new leadership will be closely watched by industry observers, particularly as the company navigates the evolving landscape of AI-driven underwriting, product innovation, and changing consumer demographics. Leadership transitions at this scale often signal shifts in product strategy, distribution approach, or operational priorities.

5. MetLife Expands Guaranteed Retirement Income and Hits New 52-Week High

MetLife Inc. (NYSE: MET) climbed to a new 52-week high in Thursday trading, extending its year-long rally as investors responded positively to the company’s strategic direction and financial performance. The stock milestone comes as MetLife continues to expand its guaranteed retirement income offerings, with the launch of an innovative flexible annuity option designed to appeal to retirees seeking predictable income streams in an uncertain interest rate environment.

MetLife’s guaranteed retirement income product expansion reflects a broader industry trend toward lifetime income solutions. As the large baby boomer demographic cohort continues to enter retirement, insurers are racing to develop annuity and guaranteed income products that offer the stability of traditional pensions with the flexibility that modern retirees demand. MetLife’s status as one of the largest life insurers in the United States gives it significant scale advantages in this competitive market.

The stock’s advance to a 52-week high underscores investor confidence in MetLife’s underwriting discipline, investment portfolio management, and ability to navigate the current interest rate environment. Life insurers generally benefit from rising rates, which improve investment yields on their massive bond portfolios, and MetLife has been particularly effective at communicating its rate sensitivity and risk management approach to the investment community.

6. Prismic Life Completes Oversubscribed Capital Raise

Prismic Life, an emerging insurtech carrier focused on modern life insurance distribution, announced the completion of an oversubscribed capital raise. The successful fundraising round signals continued investor appetite for technology-enabled life insurance distribution platforms, particularly those targeting the underserved middle market. Oversubscribed rounds — where investor demand exceeds the amount being raised — are a strong validation signal for a company’s business model and growth trajectory.

Prismic Life’s capital raise is part of a broader wave of insurtech investment in the life insurance space. While property and casualty insurtech has historically captured the majority of venture capital and private equity dollars in insurance technology, life insurance insurtech is increasingly drawing investor attention as carriers and distributors recognize the need to modernize an industry that still relies heavily on paper applications, medical exams, and weeks-long underwriting cycles. The successful raise positions Prismic Life to scale its technology platform and expand its distribution reach.

7. Globe Life Inc. Records 52-Week High as Middle-Income Demand Strengthens

Globe Life Inc. (NYSE: GL) recorded a new 52-week high on Thursday morning, continuing the stock’s impressive run driven by strong fundamentals in the middle-income life insurance market. Globe Life has established a dominant position in the middle-income segment through its direct-to-consumer distribution model and simplified underwriting processes. The company’s focus on affordable term life and whole life products for working families has proven resilient across economic cycles.

The stock has been a standout performer among life insurers in 2026. Earlier this week, Globe Life was making “surprising moves” in Tuesday trading, and the stock has now reached new highs for the third time this week alone. The sustained upward momentum reflects multiple catalysts: strong earnings performance, a growing addressable market as middle-income households increasingly recognize their life insurance coverage gaps, and the company’s effective use of data analytics and digital marketing to acquire customers efficiently.

Why This Matters to Policyholders

Each of these seven stories has direct implications for life insurance consumers in 2026. The VUL sales surge means consumers have more product options with growth potential — but the complexity of variable products means buyers need professional guidance. The STOLI ruling is a consumer protection victory: it reaffirms that life insurance must serve a legitimate insurable interest, not function as a speculative investment vehicle.

The Rybka analysis of premium-financed IUL is perhaps the most important consumer story: if you are a high-net-worth business owner or real estate investor being pitched a premium-financed IUL strategy, the industry’s own leading voices are now warning that the math may not work. The Lincoln Financial leadership transitions, MetLife’s product expansion, Prismic Life’s capital raise, and Globe Life’s market strength all point to an industry in active transformation — one where consumers have more choices than ever but also need to navigate increasing complexity.

Steps to Protect Yourself When Following Life Insurance News

1. Verify carrier financial strength: Before purchasing any policy, check the carrier’s AM Best, S&P, or Moody’s rating. A strong rating indicates the company has the financial resources to pay claims decades from now.
2. Understand the product before you buy: Variable, indexed, and fixed products have very different risk profiles. Make sure you understand how your premium dollars are invested and what returns are realistic — not just what’s illustrated.
3. Get a second opinion on complex strategies: Premium financing, private placement life insurance, and large IUL cases deserve independent review from a fee-only advisor or a second insurance professional not involved in the sale.
4. Monitor your policy performance annually: Especially for universal life and variable products, review your policy’s actual crediting rates and cash value growth against the original illustration. Falling behind the illustration is a red flag that may require action.
5. Watch for STOLI red flags: If someone you don’t know offers to pay your premiums in exchange for being named as a beneficiary, that is likely an illegal STOLI arrangement. Legitimate life insurance requires an insurable interest.

Industry Context: Key Metrics from the Week’s Top Stories

Carrier Comparison: Key Developments by Company — June 25, 2026

Key Takeaways — June 25, 2026

• Variable universal life is experiencing a renaissance — Q1 2026 sales surged 15.1% with Prudential leading the market. Consumers seeking growth-oriented permanent coverage have more options than in recent years.
• STOLI arrangements continue to be rejected by courts nationwide. The Third Circuit ruling affirms that life insurance policies must serve legitimate insurable interests — a critical consumer protection.
• Premium-financed IUL faces mounting structural challenges. With borrowing costs exceeding realistic policy returns, Valmark’s CEO joins a growing chorus warning that these strategies are too risky for most clients.
• MetLife and Globe Life both hit new 52-week highs, signaling strong investor confidence in the life insurance sector’s fundamentals and growth prospects.
• Insurtech continues to attract capital — Prismic Life’s oversubscribed raise shows investor appetite for technology-enabled life insurance distribution platforms.
• Lincoln Financial’s leadership transition may signal strategic shifts at one of the industry’s largest carriers. Watch for product or distribution changes in the coming quarters.

Frequently Asked Questions

What is variable universal life insurance and how does it differ from indexed universal life?

Variable universal life (VUL) insurance combines a death benefit with an investment component where policyholders allocate premiums among sub-accounts tied to market performance. Unlike indexed universal life (IUL), which credits interest based on a market index with caps and floors, VUL directly invests in market sub-accounts. VUL offers higher growth potential but also carries more investment risk, as the cash value can decline in down markets.

What is STOLI and why are courts voiding these policies?

Stranger-Originated Life Insurance (STOLI) is an arrangement where investors with no insurable interest in an individual’s life finance the purchase of a life insurance policy on that person, expecting to collect the death benefit. Courts have consistently found these arrangements violate public policy because they lack a legitimate insurable interest and function essentially as wagering contracts on human life. Policyholders who participate in STOLI arrangements risk having their policies voided entirely.

Is premium-financed IUL ever a good strategy?

Premium-financed IUL can theoretically work for a very narrow set of circumstances — clients who have the ability to pay premiums out of pocket but choose to finance, who understand and accept the collateral risk, and who have a realistic exit strategy beyond hoping the policy repays the loan. However, industry experts like Valmark CEO Larry Rybka argue that rising borrowing costs, falling product caps, and the compounding risks of leverage make the strategy structurally unsound for most clients. Anyone considering premium-financed IUL should obtain an independent second opinion from a fee-only advisor.

Why are life insurance stocks like MetLife and Globe Life hitting new highs?

Life insurance stocks have benefited from multiple tailwinds: rising interest rates improve investment yields on carrier bond portfolios, strong consumer demand for protection products drives premium growth, and disciplined underwriting has kept claims costs manageable. Companies like Globe Life have also benefited from their focus on the middle-income market, where life insurance coverage gaps are widest and demand is growing fastest.

What does the VUL sales surge mean for consumers?

The 15.1% increase in VUL sales signals that carriers are investing in product innovation and consumers are increasingly interested in growth-oriented permanent life insurance. For consumers, this means more competitive products, potentially better features, and more distribution options. However, VUL’s investment risk means buyers should work with a trusted professional to ensure the product fits their risk tolerance and financial goals.

How can I check if a life insurance company is financially strong?

You can check a carrier’s financial strength rating through independent rating agencies. AM Best provides the most widely used rating for insurance company financial strength, with ratings ranging from A++ (Superior) to D (Poor). Standard & Poor’s and Moody’s also rate insurers. A rating of A or higher from AM Best generally indicates a carrier with strong financial resources to pay claims. You can search carrier ratings at the AM Best website, which provides a free rating search tool.

What is the VUL market outlook for the rest of 2026?

Based on comments from Wink CEO Sheryl Moore — who noted that “the market has been on the uptick since the beginning of April” — industry analysts expect continued VUL sales momentum through Q2 and into the second half of 2026. The combination of favorable equity markets, product innovation, and growing consumer awareness of life insurance coverage gaps supports a positive outlook for the VUL market, with Q2 results expected to show even stronger performance than Q1.

Related Resources

• Compare Term Life Insurance Rates 2026
• No Medical Exam Life Insurance Options
• Whole Life Insurance Guide
• Indexed Universal Life: Pros and Cons
• AM Best — Search Insurance Company Ratings
• NAIC Consumer Resources — Insurance Information and Assistance

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Sources: InsuranceNewsNet — John Hilton (VUL sales data, STOLI ruling), Larry Rybka / Valmark Financial Group (premium-financed IUL analysis), Lincoln Financial Group, Globe Life Inc., MetLife Inc., Wink Inc. Sales & Market Report. Data as of June 25, 2026.