WINDSOR, Conn., Sept. 5, 2013 — Individual life premium grew 4 percent in the second quarter, resulting in a 6 percent increase for the first half of 2013, according to LIMRA’s Individual Life Insurance Sales Survey.
Policy count, which had been increasing slightly over the last two years, continued to decline in the second quarter, down 2 percent for the quarter and 3 percent for the first half of the year.
While every product line recorded positive growth in the second quarter and year-to-date (YTD), indexed universal life and whole life products were the biggest drivers of overall growth in the first half of 2013,” said Ashley Durham, senior analyst, LIMRA Insurance Research. “Both products are well-matched for a low-interest and uncertain economic climate, offering the principle protection and growth opportunity that consumers are seeking.”
Total universal life (UL) premium rose 1 percent — hampered by a 14 percent drop in lifetime guarantee UL and the virtual disappearance of term-UL. YTD, UL premium increased 5 percent. UL policy count fell 14 percent in the second quarter and 16 percent in the first half of 2013.
Indexed UL had another strong quarter. IUL premium increased 22 percent in the second quarter and 23 percent for the first half of the year. The growth of IUL was the biggest driver of overall sales growth this quarter and YTD.
Whole life (WL) sales remained steady and were the second biggest driver of overall growth in the quarter. Premium increased 5 percent in the quarter — the 16th consecutive quarter of positive growth. YTD, WL premium grew six percent, compared with prior year. WL policy count was down, declining 2 percent in the second quarter and 3 percent in the first six months of 2013.
Term premium jumped 6 percent in the second quarter, improving 5 percent in the first half of 2013. Most of this is due to companies discontinuing Term UL and reintroducing traditional term products. Policy count also improved, up 5 percent in the second quarter and 3 percent over the first six months of 2013. About half of the term writers increased their sales compared with the first half of 2012.
Variable universal life premium rose 9 percent in the second quarter, resulting in a 13 percent jump YTD. Policy count also improved, up 10 percent for the quarter and 5 percent in the first six months of 2013.
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