Life insurance sales dropped during the third quarter as new annualized premium for individual coverage fell 11% year over year, according to LIMRA International Inc.
That represents an overall 4% decline in annualized premiums year to date, according to the Windsor, Conn.-based marketing and research group.
Variable life and variable universal life insurance — products that invest a portion of customers’ premium into the equity markets — experienced the greatest decline in sales. Variable life fell 41% in annualized premiums, while its variable universal cousin took a 33% dive in premiums.
There number of variable and variable universal life policies also fell sharply, with variable policies decreasing by 51% in the third quarter and variable universal life falling by 22%.
Universal life also took a steep decline in sales, falling by 12% after seven consecutive years of growth.
Nevertheless, term and whole life insurance held their own. Sales were flat for term life during the third quarter, with only a 1% decline in annualized premiums year-to-date. Meanwhile, whole life gained 7% in annualized premiums in the third quarter, or 2% year-to-date.
Overall, the number of total policies decreased just slightly, by 1%.
2 comments:
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It's surprising to me that life insurance sales went down by so much! I think life insurance is very important and should be considered carefully.
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