U.S. Life Application Activity for Younger Consumers Rises

U.S. individual life insurance application activity continued to increase in February, and activity growth for applicants under 30 was especially strong, according to new MIB Group data.

The insurance data-sharing consortium saw the number of applications flowing through its application-checking systems increase 3.0% from the number recorded in February 2022.

Activity for consumers under 30 was up 8.9%, and activity for term life policies — which help consumers who are focusing on maximizing the amount of death benefits per premium dollar — was up. That compares with a year-over-year increase of 14.1% in January.

Overall activity was down from a year-over-year increase of 8.6% in January, but it’s up from a decrease of 4.3% in 2022.

What It Means

Marketing campaigns and digital sales services aimed at younger consumers, such as Life Happens’ Insure Your Love campaign, might be getting your younger clients’ attention.

The Age Breakdown

Here are the activity change figures, for February, for applicants in five different age groups:

• Ages zero-30: +8.9%
• Ages 31-50: +4.8%
• Ages 51-60: -2.3 %
• Ages 61-70: -3.6%
• Ages 71 and older: -1.0%

The Policygenius Price Index

Policygenius, a web broker, publishes a term life price index based on its own transaction data.

In the index report tables, the broker posts average monthly premium prices for clients who buy 20-year, level-premium term life coverage.

The most affordable coverage in the tables is for a 25-year-old female nonsmoker who needs $250,000 in death benefits, and the most expensive coverage is for a 55-year-old male smoker who needs $1 million in death benefits.

This month, the cost for the 25-year-old female nonsmoker seeking $250,000 in coverage increased 1% from the average for March 2022, to $14.40.

The cost of coverage for the 55-year-old male smoker seeking $1 million in coverage, fell 1.3%, to $1,006.92, from $1,019.92.

(Image: tadamichi/Adobe Stock)