U.S. consumers spent a little less on new individual life insurance policies in the first quarter, but they ended up with more coverage.
Analysts from LIMRA have reported data on the U.S. individual life market in a summary of a life insurance issuer survey report. LIMRA received responses from insurers that account for about 80% of U.S. individual life premiums.
Both new annualized premiums and the number of new policies fell 1%.
The total amount of death benefits sold increased 8%.
- A link to LIMRA’s quarterly life sales report is available here.
- An article about LIMRA’s previous life sales report is available here.
One reason total death benefits increased so much, as new annualized premiums fell, is that consumers bought more, lower-priced term life insurance, and less whole life insurance.
Policyholders spend more on while life policies to get coverage that’s designed to last a lifetime.
A term life policyholder may face a big increase in premiums when the policy term expires, but the initial ratio of death benefits per premium dollar is higher.