Strong sales of corporate-owned life insurance and private placement coverage pumped up U.S. individual life volume during the third quarter.
Total annualized premium volume increased 20% during the third quarter, even though the face amount of coverage sold increased only 7%, and the number of policies sold actually shrank 2%, according to researchers at LIMRA International, Windsor, Conn.
Annualized premiums from new universal life sales were 23% higher than they were in the third quarter of 2006, and annualized premiums from new variable universal life sales were 55% higher.
LIMRA does not release actual sales totals to the general public, but researchers say UL policies accounted for 40% of premiums from new sales and VUL policies accounted for 15%. Term policies accounted for about 23%.