The independent marketing organizations (IMOs) that participated in a new survey increased their sales of final expense life insurance by 4% in 2017, to $592 million.
The Life Insurers Council, an arm of LOMA, and Competiscan have reported those new annualized premium figures in a new financial expense market report.
The study team based the 2017 new annualized premium figures on results from a survey of 33 carriers.
The study team did not include results for direct-to-consumer final expense product sales.
Final expense life insurance helps the purchasers and their families pay for funerals, burials, cremations, and other expenses associated with death.
A copy of the full 2017 final expense study is available here.
In addition to conducting a survey of carriers that distribute final expense products through IMOs, the study team organized a survey of U.S. residents ages 50 through 85.
The study team found that:
- About 89% of IMO final expense life sales came from simplified-issue products, and about 11% of IMO final expense life sales came from guaranteed-issue products.
- IMO sales of fully underwritten final expense products amounted to a rounding error.
- The average age of the purchasers of the simplified-issue and guaranteed-issue policies was 63.
- 47% of the consumers said they would prefer to buy final expense coverage from an agent or advisor.
— Read 8 Numbers to Know for Final Expense Insurance Sales Success, on ThinkAdvisor.