According to a new study from LIMRA, titled “Third Quarter 2012 Life Insurance Sales Survey,” sales in 2012 have been primarily driven by indexed universal life products (IUL), which jumped 39 percent for the quarter and 32 percent in the first nine months of 2012.
Whole life (WL) had the strongest performance in the third quarter, improving 5 percent. It also had the largest growth over the first nine months of 2012, rising 8 percent. Nearly three-quarters of WL writers experienced positive growth, including 9 of the top 10 writers.
“Whole life and indexed universal life were the sales leaders in the third quarter,” said Ashley Durham, senior analyst, LIMRA product research. “Both product lines have consistently performed well under challenging economic conditions because they offer consumers the opportunity for steady growth while protecting their principle from the prolonged market volatility.”
Universal life (UL) new annualized premium rose 4 percent in the third quarter compared with the same period in 2011, and is 3 percent higher year-to-date. IUL reached record-level of the UL market share, representing 28 percent of the UL market.
Total individual life insurance premium grew 3 percent both in the third quarter and for the first nine months of 2012.
Low interest rates and higher capital requirements have continued to negatively impact lifetime guarantee UL (GUL) premium. Overall, GUL premium dropped 10 percent for the quarter and 9 percent year-to-date.
Term life premium dropped 1 percent in the third quarter and in first nine months of 2012. Just over half of the participating term writers increased their sales in the first nine months. LIMRA predicts term sales will increase slowly, returning to 2009 levels in about three or four years as unemployment rates recover.
Variable universal life (VUL) fell 4 percent in the third quarter and dropped 6 percent year-to-date. VUL policy count fell 12 percent in the third quarter and 10 percent for the first nine months of 2012.
