WINDSOR, Conn., Sept. 3, 2014 — Individual whole life new annualized premium increased six percent in the second quarter, driving overall individual life insurance premium to improve one percent for the second quarter, according to LIMRA's Second Quarter 2014 U.S. Individual Life Insurance Sales report.
For the first six months of 2014, total individual new annualized premium dropped four percent, compared with the same period in 2013.
"Holding 34 percent of the market, whole life's rebound from a weak first quarter fueled the positive second quarter results for overall individual life premium," said Benjamin Baldwin, associate analyst, LIMRA Insurance Research. "Over the past six years, whole life has demonstrated strong, consistent growth, which has buoyed overall insurance sales."
Overall individual life insurance policy count improved four percent for the quarter, which is the first positive quarterly growth in policy count for six quarters. Year-to-date, policy count is three percent lower than prior year.
Indexed universal life (IUL) premium improved 14 percent in the second quarter, resulting in a 13 percent increase in the first half of 2014. Almost three-fourths of IUL carriers reported increased sales compared with the first half of 2013. IUL represented 42 percent of total UL premium, and 17 percent of overall individual life premium in the second quarter.
Term life insurance premium was flat in the second quarter, resulting in a three percent decline year-to-date. Term market share remained steady at 23 percent in the second quarter.