Whole life’s combination of features, such as simplicity, premium and cash value guarantees and low risk, is proving to be a winning one, according to Ashley Durham, senior analyst for product research at LIMRA.
LIMRA’s “U.S. Individual Life Insurance Sales” report shows that individual whole life insurance surged 12% in Q3 2009. “Mutual companies, which represent two-thirds of whole life sales, continue to fare better than the public companies, growing 14% for the quarter,” she says.
However, this isn’t enough to save total individual life insurance sales. Declines in other products resulted in total individual life insurance sales falling 11% in the third quarter of 2009, according to the LIMRA report.
Overall, because of steeper decreases in Q1and Q2, total individual annualized premium sales are down 19% YTD. Universal life (UL) sales were down 14% in the Q3, compared with drops of about 30% in Q1and Q2.
In the first nine months of 2009, UL declined 24%, according to LIMRA. “It should be noted however, that UL sales began falling in the third quarter of 2008 (down 12%),” Durham says. “Still, UL annualized premium sales grew 10% since last quarter, so sales may be stabilizing.”
Q3 2009 sales were more grim for variable products, which were down 52%—lower than Q2 sales, bringing the year-to-date decrease to about 55%.
Term sales were down 3% in Q1and Q2 and flat in the Q3. The product continues to hold its own, with more than a quarter of the premium market share through the first nine months of the year despite the relatively low cost for term coverage, LIMRA says.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access