U.S. sales of preneed life insurance fell 3% in 2017, to $1.3 billion, according to the Life Insurers Council.
Sales of preneed annuities increased 5%. The dollar value of preneed annuity sales was not immediately available.
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The Life Insurers Council is an arm of LOMA, which, in turn, is part of LL Global Inc. LL Global is the parent of both LOMA and LIMRA.
The council bases its preneed sales results on a survey of 15 issuers.
Final expense insurance is an arrangement the purchaser can use to pay for funerals, cremations, burials and other arrangements from any provider.
A preneed plans helps the purchaser pay for specific arrangements from a specific provider.
Jeff Shaw, executive director of the council, said in a statement about the results that the council believes sales of preneed plans will increase as the U.S. population ages.
More information about the survey is available here.
— Read Phoenix Issues First New Annuity Since Nassau Re Deal, on ThinkAdvisor.