A third quarter 2018 survey of U.S. life insurance new annualized premium increased 3 percent in the third quarter of 2018, driven by strong indexed universal life (IUL) sales, the LIMRA study showed.
IUL premium accounted for 65 percent of all UL premium, and 24 percent of all individual premium for the first three quarters of 2018.
Total UL market share is 37 percent. All permanent life insurance products increased in sales, IUL, WL and VUL, with universal life (UL) remaining flat. The only decline in the permanent life insurance product line sales was Lifetime Guarantee Universal Life (LTGUL), which fell for the sixth consecutive quarter.
Durham noted that at the design level, VUL products with a higher focus on protection were particularly successful and VUL held 6 percent market share of total individual life insurance in the first nine months of 2018.
Life insurance is not about death benefits but promoting a better quality of life. Whole life insurance offers an avenue to diversify investments and protect wealth with consistency that is not found in term life products.
“Perhaps due to the historically high college loan burden carried by today’s graduates, this appreciation of financial security and desire to be debt-free reflects change in attitude from the ‘live for today’ ethos boomers were known for,” Ferik said.