Applications for life insurance in Canada rose 6.9 per cent at the end of the first half of this year, according to the MIB Life Index.
The index reported that activity in June was up 9.5% year-over- year. The second quarter of this year was up 14.8 per cent over the same time last year, representing the highest quarterly Canadian growth rate on record.
However, the year-over-year comparisons were hit by a significant drop in activity from the second quarter of last year, which the index attributed to COVID-19. When comparing Q2-2021 to Q2-2019, activity was down 6.2 per cent.
Applications for all age groups grow
Meanwhile, the last quarter was the first time applications for all age groups grew since the last quarter of 2016.
“We observed a shift in growth trends across age bands in Q2 starting in May, with ages 31-50 taking the lead in YOY growth while age 61-70 grew the least,” the MIB said in a news release.
June saw flat results for face amounts up to $250,000, but growth was in the double digits for face amounts over $500,000, and face amounts from $1 million up to and including $5 million, showing more than 50 per cent year-over-year gains.
Younger Canadians looking for insurance
Applications for those up to 30 years of age saw double digit growth for face amounts over $250,000 up to and including $2.5 million and also for face amounts over $5 million. Those 31-50 saw double digit growth for face amounts over $250,000 worth of insurance, while ages 51-60 saw double digit growth for face amounts over $500,000 up to and including $5 million.
MIB said universal life has emerged as a strong leader in sales with more than 50 per cent growth year-to-date. Driving those numbers are those up to 30, who have produced triple digit growth year to date. In contrast, term life sales were flat with double digit declines for those up to 30. However, there was double digit growth for universal life for those 71 and older.