The fourth quarter of 2008 showed the sharpest decline in new annualized premium for individual life insurance since the fourth quarter of 1951, and the overall year’s results showed the largest one-year decrease in LIMRA’s history, the group said.

The fourth quarter experienced a 14% decline in sales of individual life insurance. Overall, the year had a 7% decline in new annualized life premium, a far cry from the 7% gain of 2007.

The net loss of 14% of sales year-over-year is the worst on record for LIMRA and the worst since 1991, coming off a mild recession, when premium fell 5%.

Whole life premium bucked the trend in 2008. Following a third quarter resurgence of 7%, whole life sales increased 2% in the fourth quarter. For the year, LIMRA said, whole life sales were up 2% over 2007.

Other areas fell sharply. Universal life sales fell 23% in the fourth quarter. Variable universal life products continued to follow market trends, dropping 18% in the fourth quarter, finishing the year down 17%.

Nine of 10 writers suffered declines, most in double digits, last year, LIMRA reported.

Term life premium was down 3% for the fourth quarter and 2% overall in 2008.

Nearly 60% of term writers saw declines in 2008, with 30 percent experiencing double-digit declines, LIMRA reported.

Policies sold also fell at a rate of 10% in the fourth quarter of last year and 4% for the year.