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Whole, Universal Life Drive Increase in Q2 Sales, LIMRA Reports

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Life insurance sales did well in the second quarter of 2010, according to a report on Wednesday, August 25, from LIMRA. Whole, universal and variable life insurance products all posted increases in the second quarter; in fact, the only product that did not increase in sales was term life.

Individual life insurance sales increased for the second consecutive quarter, LIMRA reports, increasing annualized premium by 7%. Sales for the first six months increased 9%.

Whole life experienced its fourth consecutive quarter of double-digit growth, increasing 23% in the second quarter. Whole life’s market share is 31%, according to LIMRA, the highest share since 1998.

Sales of universal life increased 11% in the second quarter; sales are up 13% for the first six months. Death benefit guarantees increased 5% and account for half of universal life annualized premium, according to LIMRA’s report.

Part of the increase in universal life sales can be attributed to the success of indexed universal life, which increased 40% in the second quarter. This drove non-guaranteed UL sales up 26% over the first half of 2009, LIMRA reports.

Variable universal life sales, while not of the magnitude of whole life or universal life, also increased, rising 2% in the second quarter. Year-to-date sales increased 6%. LIMRA noted that in the second quarter of 2009, variable universal sales had fallen 55%.

The only product that didn’t show increases in the second quarter, term life, fell 11%. According to LIMRA this is the largest fall since 2001.