Combination life insurance policies are becoming more popular. According to LIMRA, new premium sales of individual life combination products climbed 62 percent in 2010, reaching $1.2 billion. That follows the double-digit increase charted in 2009.
New sales of combination products account for 6 percent of the individual life insurance market based on new premium. Furthermore, the 26,000 combination policies sold in 2010 represent a 69 percent increase over 2009 sales results.
In recent years, most of the growth in the combination product market has resulted from linked benefit products. In 2010, linked benefit products grew 60 percent, representing 45 percent of policies sold. These linked benefit policies provide LTC benefits above the life death benefit and are mostly single premium, all-in-one packaged products.
Showing even more growth were accelerated products, which grew by 76 percent in 2010. Such policies now make up 55 percent of the market by policies sold. Acceleration products provide LTC benefits up to the amount of the life death benefit. When LTC benefits are needed, it draws down or accelerates the death benefit. These products typically have much higher face amounts, but the portion that can be accelerated for LTC may be capped.
Other facts from LIMRA:
Buyers in their 60s continue to be the biggest portion of in-force polices.
Female policy owners account for 65 percent of in-force policies, an increase of six percentage points from the 2009 survey.
Career and independent agents dominant the combination product sales market, with more than half of the premiums sold coming through those channels. In 2010, career and independent agents experienced 99 percent and 146 percent new premium growth, respectively.
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