Survivorship life income for most companies has been good due to strength in equity markets throughout 2007 and persistent federal and state estate taxes. According to LIMRA International, total annualized premium and face amount rose 10% from the beginning of the year through the 3rd quarter, even as the number of policies issued declined by 2%. The beneficiaries of this growth were companies selling variable products, which accounted for a 41% increase in premium volume and a 22% increase in face amount.
Universal life sales were particularly anemic through the 3rd quarter with an 8% decrease in the number of policies sold. However, overall sales of all policy types should remain strong and the pendulum will probably start to swing back to fixed products somewhat due to recession fears currently roiling equity markets and new generations of UL products taking advantage of lower mortality costs from the new 2001 tables. Safety, to certain segments of the market, sells with people looking for guarantees, as can be evidenced by an 18% jump in the number of survivorship whole life policies issued, even though relatively few companies offer it.
The Full Disclosure excerpts in this report feature illustrated values for whole, universal, indexed universal, and variable life survivorship products. And while these charts are only slices of the Full Disclosure database, they will give an idea of how these products perform on a prospective basis.
Also included are charts for minimum long-term guarantee products. This increasingly popular use for flexible premium survivorship life insurance provides minimum annual premiums to age 100 or beyond (lifetime) with little or no cash value at maturity, but with low guaranteed annual premiums.