Life Sales Increase Again in USBy Andrew Rickard | September 02 2015 10:40AM
Data from industry research group LIMRA shows that life insurance sales increased in the United States during the last quarter when measured by both new premiums and policy count.
LIMRA reports that new annualized premiums increased by 8% in the second quarter of 2015, which is the fourth consecutive quarter of premium growth for individual life insurance in the US, while total policy count was up by 6% for the period. Every major product line except for variable life saw gains, with whole life and indexed universal life accounting for much of the increase.
In the second quarter of the year new annualized premiums were up by 13% for universal life (UL) insurance with indexed UL being the main source of growth in the category, up by 24%. LIMRA points out that indexed UL now accounts for more than half (53%) of all individual life premiums in the US and represents 38% of all sales in the second quarter. Variable UL, however, saw sales decline by 15% in Q2, putting an end to a growth streak that had lasted for ten consecutive quarters.
New annualized premiums for whole life increased by 12% for the quarter and the product now represents 35% of the total life market. LIMRA says that while affiliated agents sold the most whole life premiums, the independent, direct, and worksite channels also experienced double-digit growth.
Term insurance posted a very modest 1% gain in new annualized premiums for the period, and is only up by 2% for the year; the product accounts for 21% of the US life insurance market.