In a positive piece of news for the life insurance industry, it has been reported that final expense insurance sales reached nearly $400 million in 2013. The Life Insurance Council and CSG Actuarial conducted a survey of 25 insurers, finding that final expense insurance new premium totaled nearly $400 million in 2013, representing 613,000 policies.
“The final expense market has great potential. According to LIMRA Secure Retirement Institute research, 1.5 million Americans are projected to retire each year until 2025 and many of them will need the protection final expense insurance will provide,” noted Jeffrey S. Shaw, LIC executive director. “We are seeing renewed interest from larger insurers, as well as new firms entering the market.”
The study, LIC/CSG Final Expense Survey Report – 2013 Data, collected information from 25 companies that offer final expense insurance distributed through specialized IMOs, including average issue age and face amount. The overall average issue age was 61 and average face amount was $10,864.
According to the study, new premium increased seven percent in 2013, while policy count improved two percent in 2013.