The popularity of life combination products has proven not to be just a trend. The amalgamated products grew 56 percent in 2011, representing a third consecutive year of double-digit growth.
The findings published by LIMRA, Windsor Conn., in their 2011 Individual Life Combination Products Annual Review stated that total new premium for life combination products reached $2.2 billion in 2011, constituting approximately 13 percent of total individual life insurance new premium.
LIMRA believes that the popularity of combined life policies is being propelled by a sense of uncertainty in the stand-alone long term care insurance market (LTCI). Consumers under 50 are looking for a way to cover part of their long term care costs and feel that acceleration combination products are a viable alternative due to their affordability.
Acceleration policies, which provide LTC benefits up to the amount of the life benefit and are usually riders that can be fastened to most products in a carrier’s life product portfolio grew 29 percent, LIMRA reported, comprising 70 percent of market share by value.