3Q Life Sales Down, But Still On Upswing Compared With 2020

Non-variable universal life sales for the third quarter were $724.4 million; down 5.3% when compared to the previous quarter and up 15.9% as compared to the same period last year, according to Wink's Sales & Market Report. Non-variable universal life (UL) sales include both indexed UL and fixed UL product sales.

Noteworthy highlights for total non-variable universal life sales in the third quarter included National Life Group with the #1 overall sales ranking for non-variable universal life sales, with a market share of 10.6%. Transamerica Life’s Transamerica Foundation IUL was the #1 selling product for non-variable universal life sales, for all channels combined.

Indexed life sales for the third quarter were $609.3 million, down more than 2.1% when compared with the previous quarter, and up 21.0% as compared to the same period last year. Indexed life sales include both indexed UL and indexed whole life. “While life insurance sales were up across-the-board last quarter, this quarter they are all down,” explained Sheryl J. Moore, CEO of Wink, Inc. and Moore Market Intelligence. “That said, indexed life sales will set a record this year,” she added.

Items of interest in the indexed life market included National Life Group with the #1 ranking in indexed life sales, with a 12.5% market share. Pacific Life Companies, Nationwide, Transamerica, and John Hancock rounded out the top five, respectively.

Transamerica Life’s Transamerica Foundation IUL was the #1 selling indexed life insurance product, for all channels combined. The top pricing objective for sales this quarter was Cash Accumulation, capturing 75.4% of sales. The average indexed life target premium for the quarter was $11,267; an increase of more than 1.0% from the prior quarter.

Fixed UL sales for the third quarter were $115.3 million, down 19.0% when compared to the previous quarter and down nearly 5.3% as compared to the same period last year. Noteworthy highlights for fixed universal life included the top pricing objective of No Lapse Guarantee capturing 40.4% of sales. The average UL target premium for the quarter was $5,368; an increase of nearly 6.0% from the prior quarter. “It is sad to see UL sales as depressed as they are; unfortunately I just don’t see it turning around with interest rates being so low and the cost of guarantees being so high,” commented Moore.

Whole life third quarter sales were $1.0 billion, down 6.0% when compared with the previous quarter, and up 3.9% as compared to the same period last year. Items of interest in the whole life market included the top pricing objective of Final Expense capturing 60.0% of sales. The average premium per whole life policy for the quarter was $3,105, a decline of more than 10.0% from the prior quarter.

Wink currently reports on indexed universal life, indexed whole life, universal life, whole life, and all deferred annuity lines’ product sales. Sales reporting on additional product lines will follow in the future.