September yields life application gains in younger age groups, MIB says

Image shows the letters 31-50 — Life insurance application activity increased in the 31-50 age band during September.

By Staff Reports

Life insurance application activity showed gains in the coveted younger age bands during September, according to the MIB Life Index.

The month saw year-over-year growth of 2.6% for ages 0-30 and 2.5% for ages 31-50. September 2024 saw similar growth for all face amounts, in the double digits for amounts over $500,000 up to and including $5 million, MIB reported.

"It is important to note MIB is working with our members to improve the consistency of the data reported to us, including face amounts," the organization said in a news release. "While these enhancements do not affect aggregate trends, they may impact YOY comparisons by face amount."

When comparing the third quarter 2024 to the year-ago quarter, all face amounts saw growth, in the double digits for amounts over $250,000 up to and including $5 million. When comparing year-to-date activity through the end of Q3 2024, amounts over $250,000 saw growth – in the double digits for amounts over $500,000 – while amounts up to and including $250,000 saw declines, MIB said.

Declines in others offset gains in some age bands, MIB reported, and overall life application activity remained flat at up 0.9% for the year.

Compared to recent years, year-to-date activity through Q3 was up 3.7% compared to 2022 and down 2.8% compared to 2021. On a year-over-year basis, September 2024 activity was flat at +1.1% compared to September 2023 and activity during Q3 (July through September) was up +1.5% compared to activity during Q3 2023.

Additionally, when comparing Q3 2024 to Q2 2024, activity was down -3.3%, "following a seasonal pattern consistent with historical trends," MIB noted.

Older bands see declines

During September, life application activity declined 2.6% for ages 51-60, and declined 2.3% for ages 61-70. Activity increased by 2.3% for those over age 71. Comparing Q3 2024 to Q3 2023, ages 0-30 was up 2.5%, ages 31-50 up 2.4%, ages 51-60 down 2%, ages 61-70 flat at -0.6%, and ages 71+ up 6.1%. When comparing year-to-date activity through Q3 2024 to Q3 2023, ages 31-50 and 71+ saw growth, ages 0-30 and 61-70 saw flat activity and ages 51-60 saw declines, MIB reported.

When including age bands comparing Q3 2024 to Q3 2023, ages 0-30 saw double-digit growth for amounts over $250,000 up to and including $5 million, flat activity for amounts up to and including $250,000, and double-digit declines for amounts over $5 million. Ages 31-50 saw growth for all amounts, in the double digits for amounts over $500,000.

Ages 51-60 saw growth for all amounts, in the double digits for amounts over $250,000 up to and including $5 million. Ages 61-70 saw growth for all amounts, in the double digits for amounts over $250,000. Ages 71+ saw growth for all amounts, in the double digits for amounts over up to and including $250,000, amounts over $500,000 up to and including $1 million, and amounts over $2.5 million, MIB said.

Whole life, term show growth

When examining product type, September saw growth for whole life (up 2.6%), double-digit growth for term life (up 13.9%), and double-digit declines for universal life (down 27.1%). Universal life has not seen year-over-year growth since November 2023, MIB noted. When comparing Q3 2024 to Q3 2023, patterns were similar with whole life up 6.2%, term up 12.5%, and universal life down 29.3%.

When including age bands and comparing Q3 2024 to Q3 2023, term saw growth for ages 0-70, in the double digits for ages 0-50, and flat activity for ages 71+. Whole life saw growth for ages 0-50 and ages 61+, in the double digits for ages 71+, and flat activity for ages 51-60. Universal life saw double-digit declines for all age bands.