Individual life premium grew 4 percent in the second quarter, resulting in a 6 percent increase for the first half of 2013, according to LIMRA’s latest individual life insurance sales survey.
Policy count, which had been increasing slightly over the last two years, continued to decline in the second quarter, down 2 percent for the quarter and 3 percent for the first half of the year, the report states.
“While every product line recorded positive growth in the second quarter and year-to-date, indexed universal life and whole life products were the biggest drivers of overall growth in the first half of 2013,” says Ashley Durham, senior analyst, LIMRA Insurance Research. “Both products are well-matched for a low-interest and uncertain economic climate, offering the principle protection and growth opportunity that consumers are seeking.”
Total universal life (UL) premium rose one percent, hampered by a 14 percent drop in lifetime guarantee UL and the virtual disappearance of term-UL. Year-to-date, UL premium increased 5 percent. UL policy count fell 14 percent in the second quarter and 16 percent in the first half of 2013.
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Indexed UL had another strong quarter, the survey shows. IUL premium increased 22 percent in the second quarter and 23 percent for the first half of the year. The growth of IUL was the biggest driver of overall sales growth this quarter and year-to-date.