Expert Explains Life Sales Slump

Seniors, who tend to buy higher face amounts than do younger buyers, represented more than half of annualized premium sales in 2008, Durham added.

Among seniors, death benefit-guaranteed products, such as secondary guarantee universal life or second-to-die policies, are especially popular. But Durham noted these products suffered a dip in sales because of a rise in premium costs, increases made necessary in many cases due of stiffer capital reserve requirements.

NU’s report on Limra’s quarterly survey can be found here.