US life market shows higher demand from older clientspar Andrew Rickard | June 16 2016 09:45AM
In the United States most applications for life insurance continue to come from those under the age of 44, although last month there was a significant monthly increase in demand from those over 60.
The Medical Information Bureau (MIB) Life Index measures application activity for individually underwritten life insurance in the US. It shows that the demand for individually underwritten life insurance has increased by 2.6% year-over-year, for all ages combined. For the last several months the main force behind this growth was the age 0 to 44 demographic, which accounted for 54.3% of life insurance applications during the month of May.
On the rise in all age groups
MIB notes that the demand for life insurance was on the rise in all age groups. For ages 0-44, applications in May were up by 3.0% compared to the previous month, while ages 45-59 saw an increase of 1.1%. As for the older segment of the market, made up of those aged 60 and over, applications increased by 3.9%, year-over-year.
"Year-to-date, life insurance applications ages 0-44 are up 5.2%; ages 45-59, up 2.1%; and ages 60+ up 2.7% compared to the same five months in 2015," reads the MIB report. "Gauging momentum by month-to-month application activity by age group shows ages 60+ with the leading gain, up 3.9%; ages 45-59, up 1.1%; and ages 0-44 losing ground, off -8.1% May-to-April."