Annualized premium revenue from new U.S. individual life sales increased 1% during the second quarter — and the number of policies sold and total face amount sold also rose 1%.
Whole life and universal life (UL) volume continued to grow, and term life volume continued to shrink, but the performance gap was not as wide as it was in the first quarter, according to LIMRA, Windsor, Conn.
LIMRA has published second-quarter U.S. individual life market statistics in a report based on a life insurer survey.
In the first quarter, sales of whole life and UL products grew rapidly as sales of term life products plunged. New whole life premium revenue increased 10% and new UL premium revenue increased 7% as new term life premium revenue sank 8%.
During the latest quarter, new term life premium revenue fell 5%, but growth in new premium revenue slipped to 5% for whole life and to 1% for UL products.
Although whole life was the leader in terms of revenue from new sales, UL products enjoyed the fastest growth in number of policies sold and total face amount.
The UL policies sold rose 11%, and total UL face amount increased climbed 12%.
Sales of indexed UL products jumped 29%.
LIMRA analysts are noting that overall individual life sales growth continued, even if it slowed.
“Part of the slowdown in growth is a reflection of a few companies moving away from lifetime death benefit guarantee universal life products,” Ashley Durham, a LIMRA senior analyst, says in a statement about the latest survey results.
New variable universal life (VUL) premium revenue increased 3%, but the number of VUL policies sold fell 11%, and the total amount of VUL face amount sold fell 5%.