Individual Life Insurance Sales Up in 3Q
Individual life insurance premium totals grew about 6% in the third quarter of 2011, and 5% in the first nine months of 2011. LIMRA's US Individual Sales report shows this is in large part due to increasing whole life insurance sales over the past year. The press release from LIMRA found on InsuranceNewsNet.com talks about the various drivers and who is receiving benefits from this growth.
Ashley Durham, senior research analyst for LIMRA product research, says the biggest driver of individual life insurance growth in the third quarter is whole life sales. Their premium increased 10% for both the quarter as well as the year overall. Whole life products are likely benefiting from premium and cash-value guarantees as well as life time coverage. These unique benefits address leading concerns from consumers especially during these tough economic times. Investors are looking for security and they are finding more of this in whole life insurance products for their families. This is the only product to produce positive growth in five years.
Universal Life premiums improved about 3% in the third quarter of 2011, and has grown 6% year to date. Universal Life experienced the second largest increase for absolute dollar growth for the first nine months of 2011. Strong indexed Universal Life sales had a major impact on overall Universal Life Sales for the year overall. Indexed Universal Life premiums increased 30% in the 3rd quarter and 35% year to date. This is a substantial increase that has had a positive impact on life insurance sales throughout the industry. For more detailed information on this report you can visit LIMRA.