New Report Shows Life Insurance Sales Have Surged

Posted in Life Insurance

December 1st, 2009

Data recently released by the Life Insurance and Market Research Association (now known as LIMRA) shows that individual whole life insurance surged in 2009′s third quarter. According to the association, the increase in life insurance sales was by 12 percent.

Other Stats from the Report

The report also showed that mutual companies, which represent two-thirds of whole life sales, grew 14 percent in the quarter. However, according to the report, the surge in whole life insurance sales does not help total individual sales, which have fallen 11 percent in the third quarter.

Here are a few more stats from the LIMRA report:

• Total annualized premium sales are down 19 percent YTD.
• Universal life sales were down 14 percent.
• In the first nine months of 2009, the universal life sales dropped 24 percent – however, sales began falling in the third quarter of 2008 and had already dropped 12 percent at that point.

In the second quarter, LIMRA reported a 20 percent drop in annualized premiums and in third quarter, it seems they are bouncing back with an increase in sales of 10 percent.

Why the Fluctuations in Insurance Sales?

In a September report from On Wall Street, it seems that the fluctuations in life insurance sales come from the mixed feelings about the economy. On one hand, the premium prices may to be hard to manage, but some policyholders feel that with other assets having dwindled, maintaining a life insurance policy is the one way to ensure financial security for one’s family.

Experts would agree that maintaining a life insurance policy is the best option for financial security. If you are looking for your own coverage, your best bet is to shop around until you find a policy that suits you.