Signs of life emerged in the U.S. life insurance market, as individual life premium rose 7 percent in new annualized premium in 2006. That increase is the largest since 2000, according to LIMRA International. Total face amount sold went up by 4 percent over the previous year.
On a product-by-product basis, universal life and variable UL both grew the most, up by 9 percent each. Term life was up by 5 percent, whole life by 2 percent. Universal life’s market share stands at 40 percent, followed by 23 percent for term, 22 percent for whole and 14 percent for variable UL.
Survivorship sales were down 2 percent, likely over concern about the fate of the estate tax.
|Annualized premiums||Face amount||Number of policies|
|Universal life||9 percent||7 percent||-2 percent|
|Term life||5 percent||4 percent||1 percent|
|Whole life||2 percent||0 percent||-2 percent|
|Variable universal||9 percent||-2 percent||-7 percent|
|Variable life||-4 percent||-2 percent||-12 percent|
|Totals||7 percent||4 percent||-1 percent|