U.S. individual life insurance new annualized premium increased 8 percent in the third quarter 2015, the fifth consecutive quarter of positive growth, according to LIMRA’s Third Quarter 2015 U.S. Retail Individual Life Insurance Sales Survey.
“In the first nine months of 2015, strong whole life and indexed universal life sales resulted in a 7 percent increase for overall individual life insurance premium,” noted Ashley Durham, assistant research director, LIMRA Insurance Research. “Every major product line recorded positive premium growth for the quarter.”
Total policy count rose 4 percent in the third quarter and 5 percent year-to-date. Total universal life (UL) new annualized premium improved 11 percent in the third quarter, resulting in a 10 percent increase in the first nine months of 2015.
In the third quarter, indexed UL (IUL) new annualized premium — a subset of total UL sales — drove overall UL sales growth. IUL premium rose 20 percent in the third quarter and 19 percent year-to-date. IUL now represents 54 percent of UL and 21 percent of all individual life premium sold during the first three quarters of the year.
Total UL premium represents 38 percent of all life sales in the first nine months of 2015.