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LIMRA: Whole Life Drives Life Increase

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New individual life annualized premium was 7% higher in the second quarter than in the comparable quarter in 2009.

Annualized premium from new U.S. coverage sales climbed 11% for universal life, and it jumped 23% for whole life, according to LIMRA Windsor, Conn.

Whole life and universal life also showed strong growth in policy amounts and number of policies sold.

For whole life, the face amount of coverage sold increased 18%, and the number of new policies sold increased 8%. For universal life, face amount increased 11%, and the policy count increased 34%.

Variable universal life (VUL) and term products had a tougher time.

Sellers of term life experienced an 11% drop in annualized premiums, a 13% drop in face amount, and an 11% drop in the number of new policies sold. VUL sellers increased new annualized premiums 2%, but the number of policies sold fell 7%, and face amount fell 2%.

Because of the weakness in the term life market, the total number of policies sold increased just 1%, and face amount for all products fell 3%, LIMRA says.