Applications for Canadian life insurance dropped 13.2 per cent in September compared to a year ago, making this the third consecutive month of year-over-year declines, according to the MIB Canadian Life Index.
The drops came to all age groups, with those 31 and over falling in the double digits. Similar experience was seen on a quarterly basis with all age groups declining when comparing Q3-2021 to Q3-2020, with ages 31 and up declining in the double digits, reversing the positive trends that were shown in the second quarter.
Face amounts over $1 million see double-digit growth
September saw year-over-year double-digit declines in application activity for face amounts up to and including $500,000, flat activity for face amounts from $500,000 to $1 million. There was double-digit growth for face amounts over $1 million.
Universal life was the biggest seller, experiencing double-digit growth year-over-year in September, a pattern seen throughout 2021. In contrast, both term and whole life sales experienced double-digit declines.
The younger age bands are driving growth in universal life with those up to 50 at double-digit growth. Ages 51-60 saw flat activity for universal life while those 61 and over felt the double digit declines. Term life sales faced double digit declines across all age groups, while whole life also saw declines across all age bands.