Individual life combo products grew 10% in 2012

All life combination product lines experienced growth in 2012, with whole life (WL) and universal life (UL) combination premiums each growing 10 percent and variable combination premium growing 3 percent. Whole life combination policy count jumped 23 percent; UL policy count rose 19 percent; variable policy count improved 4 percent.

Linked-benefit products, which are mostly single premium and all-in-one packaged products, dropped 1 percent in policy count and held only 24 percent of the market in 2012. Acceleration policies, which provide long-term care benefits up to the amount of the life death benefit and are more commonly riders that can be attached to many of the products in a carrier’s life product portfolio, grew 27 percent, capturing 76 percent of market share (by policy count).

LIMRA’s study found all but one distribution channel (independent RIAs) experienced double-digit growth in 2012, measured by both premium and policy count. Banks and savings institutions posted the largest premium growth, rising 21 percent; affiliated agents recorded 30 percent growth in policy count.

Similar to stand-alone long term care insurance, the majority of combination policies in force are insuring women with a greater portion of policies issued in their 60s. LIMRA’s study found that consumers under age 59 held more than half of in-force polices in 2012. Similar to long term care insurance, a greater number of life combination policies are insuring women — almost six in 10 policies in force are providing coverage to women.