U.S. term life buyers might be spending a little less on term life insurance and getting less coverage for each dollar spent.
- A link to the Milliman survey summary is available here.
Milliman has published data supporting that possibility in a summary of results from a survey of 28 companies that sell individual term life insurance in the United States.
The full report includes more than 100 figures, with figures covering topics such as overall level of mortality, use of simplified issue underwriting, and 10-year term sales commissions and marketing allowables.
An executive summary puts data from a few of the figures in front of the Milliman paywall.
One page shows that the average weighted premium per policy for all term policies combined equals $1,324 per year for 2018, down 4.5% from the average for 2017.
The average death benefit per policy fell 8.5% between 2017 and 2018, to $231,901.
The average amount of return-of-premium term life coverage per premium dollar fell 4.1%, to $176.
Another pricing indicator — the weighted average premium per policy for all term products with level-premium term periods — fell 1.2%, to $1,015.
The survey participants’ total term life sales held steady at about $1.2 billion.
— Read Life Application Activity Crept Higher in 2019: MIB, on ThinkAdvisor.