Life Insurance Premiums Increased in 2017
At the end of 2017, researchers of the LIMRA US Retail Individual Life Insurance Sales Survey discovered that Individual life insurance premiums increased by 4 percent during the first half of 2017, while the second quarter yielded a 3 percent increase in new annualized premiums. In light of this information, Ashley Durham, an associate research director at LIMRA, explains, “All major product lines experienced annualized premium growth during the first half of 2017. While whole life led the way in terms of absolute dollar growth during the first half of the year, indexed universal life was the primary driver during the second quarter” (Source).
Here’s what LIMRA found during their US Retail Individual Life Insurance Sales Survey:
- A new annualized premium of Universal life insurance (UL) increased by 2 percent during the second quarter, while in the first half of the year, the UL premium rose by 4 percent.
- The new annualized premium of Indexed Universal Life Insurance (IUL) increased by 8 perfect in the second quarter. In this discovery, researchers noted that close to half of IUL owners reported positive growth in their policy. To date, IUL premiums increased by a total of 7 percent.
- Reports showed that Lifetime Guarantee Universal Life (LGUL) declined 11 percent of applicants even after two-quarters of straight increases. Due to this, the year-to-date growth for LTGUL averaged 1 percent.
- Variable Universal Life (VUL) experienced a 5 percent increase in their new annualized premiums during the second quarter, with a year-to-date increase of 1%.
- Whole Life insurance (WL) had a 2 percent increase in their new annualized premiums during the second quarter, with a year-to-date increase of 5 percent. This places Whole Life insurance 7th out of the 10 companies that reported growth during 2017. However, compared to its steady growth rate in 2016, WL insurance has grown at a very slow pace. Additionally, the premiums of Whole Life insurance represented approximately 37 percent of the total life market.
- Lastly, Term life insurance saw a 3 percent growth in their new premiums during the second quarter.
The results that LIMRA discovered in their Second Quarter 2017 US Individual Life Insurance Sales Survey, was based on approximately 80 percent of the individual life insurance annualized premium market in the US. Additionally, their research on Indexed Universal life insurance represented close to 56 percent of the UL premium, while depicting 21 percent of all individual life insurance premiums. The Lifetime Guarantee Universal life insurance accounted for 20 percent if Universal Life insurance sales, with 7 percent in total life premiums.
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