As the economy continues to struggle, a growing number of people, especially the elderly, appear to be looking to the future by investing in life insurance for their families.
Latest statistics from the MIB Life Index show U.S. applications for individually underwritten life insurance policies is relatively flat at a negative 0.3 percent in the third quarter of 2011/2010, but improved over the previous year’s third quarter 2.6 percent decline. However, while June through August experienced unseasonal gains, September saw a 3.4 percent decline in application activity, the report states.
The report also notes that older Americans are among those most focused on life insurance investments. This could be because of losses in their retirement savings.
The data shows consumers ages 60 and up increased their life insurance application activity by 6.9 percent over the previous year, accounting for an overwhelming percentage of the industry’s recent gains. In contrast, activity among those under age 45 was down 7.1 percent, while those ages 45 to 59 decreased their application activity by a comparatively modest 1.7 percent margin.
The industry is on track to finish the year down less than 1 percent year-over-year, which MIB’s President and CEO, Lee B. Oliphant, says is “a relatively good performance in light of a moribund economy.”