Younger buyers drive life insurance demand

By The IJ Staff | January 19 2018 09:45AM

Photo: Freepik

Demand for life insurance in the U.S. in November and December was up 1.2 per cent and 1.0 per cent, according to the MIB Life Index.

The MIB Life Index measures application activity for individually underwritten life insurance in the United States.

Upward trend

The Life Index lost ground monthly in all but the final two months of 2017. The improvement at year-end demonstrates an upward trend heading into 2018, says MIB.

Younger life insurance applicants (ages 0-44) drove the MIB Life Index in 2017 with both Q3 and Q4 activity up 0.2 per cent and 1.6 per cent, respectively.

Application activity in ages 0-44 rose 2.3 per cent in November and 1.2 per cent in December year-over-year. 

Online channels

"The year-over-year increase in monthly application activity for younger age buyers in the second half of 2017 is validating the industry’s investment in innovative marketing, product design, underwriting and online channels to reach this key segment of the underserved market,” said Lee Oliphant, MIB Group’s Chief Executive Officer. “We remain cautiously optimistic that the positive growth seen in the fourth quarter of 2017 will continue as we head into 2018."

The 45-59 age group saw the greatest decline in application activity, off -4.0 per cent YTD.