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Life Health > Life Insurance

Younger Life Applicants Had a Busy April

By Allison Bell

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The U.S. individual life insurance market was a complicated place in April.

Overall, application activity fell 1.4% from the level recorded in April 2022, and the number of applications from people ages 51 and older for all kinds of major coverage types dropped, according to new MIB Group data.

But, for applicants ages 50 and younger, application activity held steady for term life; grew a little for whole life; and climbed more than 10% for universal life.

What It Means

The jumbled life insurance application trends picture reflects the effects of economic turmoil and new batches of U.S. mortality data on what life insurers are trying to sell to your clients, how they are trying to distribute it, and what prices they’re charging.

Clients need skilled financial professionals to figure out which carriers are offering the best deals to which types of applicants.

MIB

Life insurers created MIB to share some of the information used in the life insurance application underwriting process.

The Braintree, Massachusetts-based organization’s monthly application activity index report is based on the number of applications moving through its own systems.

Activity by Age

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

  • Ages zero-30: +1.6%
  • Ages 31-50: +1.7%
  • Ages 51-60: -4.9%
  • Ages 61-70: -7.8%
  • Ages 71 and older: -9.4%

The Policygenius Price Index

Policygenius, a web broker, has created a monthly term life price index using its own coverage providers’ prices.

The lowest prices in the index tables are the average monthly premiums for a 25-year-old female nonsmoker who needs $250,000 in death benefits.

The highest prices are 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 1.2%, to $14.38, from $14.21 in May 2022.

The cost for the 55-year-old male smoker seeking $1 million in coverage fell 0.9%, to $1,006.82, from $1,016.10.

(Image: Thinkstock)

Allison Bell

Think_Allison

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