Life combination products grew 56 percent in 2011, according to LIMRA’s “2011 Individual Life Combination Products Annual Review.” This was the third consecutive year of double-digit growth.
“With so much uncertainty in the stand-alone long-term care insurance (LTCI) market, consumers under 50 — looking for a way to cover a portion of long-term care costs — are turning to acceleration combination products as an affordable alternative,” said Elaine Tumicki, corporate VP and director LIMRA product research.
Total new premium for life combination products was $2.2 billion in 2011, representing 13 percent of total individual life insurance new premium. More than 72,000 combination policies were sold in 2011, comprising 16 percent of all long-term care insurance policies and contracts sold in 2011.
All life combination product lines grew in 2011, LIMRA said. Universal life combination products grew most aggressively, increasing 67 percent in premium compared with 2010. Whole life premium grew 16 percent, and variable combination premium grew 17 percent compared with 2010.
Linked benefit products, which are mostly single premium and all-in-one packaged products, grew 66 percent in policy count and captured 29 percent of the market in 2011, compared with 21 percent market share in 2010.
According to LIMRA, “Acceleration policies, which provide LTC benefits up to the amount of the life death benefit and are more commonly riders that can be attached to many of the products in a carrier’s life product portfolio, grew 29 percent, attaining 71 percent of market share by policy count.”
LIMRA’s study also found that consumers under age 59 held more than half of the in-force policies in 2011, and similar to long-term care insurance, more life combination policies are insuring women; almost six-in-ten policies in force now provide coverage to women.
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