U.S. Life Application Activity Heats Up
Growth was especially strong for a product that clients use to accumulate assets.
U.S. individual life insurance application activity looked healthier in January, according to new MIB Group survey data.
The insurance data-sharing consortium saw the number of applications flowing through its application-checking systems increase 8.6% from the number recorded in January 2022.
In 2022, the MIB life application activity indicator fell 5.5%, partly because consumer fear of the COVID-19 pandemic made 2021 a boom year for life sales.
The hottest product was universal life — a type of policy often used to accumulate assets, not just to protect beneficiaries against the death of the insured. Universal life application flow was up 21% last month, year over year.
What It Means
Some of the same forces increasing client interest, such as higher interest rates and fear of investment market volatility, might be promoting use of universal life insurance.
Activity by Age
Here are the activity change figures, for January, for applicants in five different age groups:
- Ages zero-30: +14.1%
- Ages 31-50: +8.6%
- Ages 51-60: +4.0%
- Ages 61-70: +6.1%
- Ages 71 and older: +8.8%
The Policygenius Price Index
Policygenius, a web broker, uses its own sales data to create a monthly term life price index.
The broker gives average prices for clients who buy 20-year, level-premium term life coverage.
The lowest-priced coverage included is for a 25-year-old female nonsmoker who needs $250,000 in death benefits, and the highest-priced coverage is for a 55-year-old male smoker who needs $1 million in death benefits.
This month, the lowest price in the Policygenius price tables, for the 25-year-old female nonsmoker seeking just $250,000 in coverage, increased 3.2% from the average for January 2022, to $14.36, from $13.90.
The highest price, for the 55-year-old male smoker seeking $1 million in coverage, fell 0.6%, to $1,009.49.
(Image: Jules Zagarola/Adobe Stock)