Life Insurance coverage Premium Up 21% In The Second Quarter, LIMRA Stories

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Within the first six months of 2021, the overall variety of insurance policies offered elevated 8%, in contrast with prior 12 months outcomes. That is the best coverage gross sales progress recorded since 1983, in line with LIMRA’s Second Quarter U.S. Particular person Life Insurance coverage Gross sales Survey.

Complete U.S. life insurance coverage premium elevated 21% within the second quarter 2021, the biggest year-over-year improve since third quarter 1987. For the primary half of 2021, complete premium elevated 18%, in contrast with the primary six months of 2020.

“In keeping with the 2021 Insurance coverage Barometer research, 36% of Individuals stated they deliberate to buy life insurance coverage this 12 months. For the second consecutive quarter, we see this buy intent translate into sturdy gross sales outcomes,” stated David Levenson, president and CEO, LIMRA, LOMA and LL World. “Following the file life insurance coverage gross sales within the first quarter, most firms are reporting vital progress in premium and coverage gross sales within the second quarter. Eight in 10 carriers reported constructive premium progress, together with every of the highest 10 carriers.”

Complete life new premium jumped 25% within the second quarter and coverage rely elevated 5%, in contrast with prior 12 months. Complete life product gross sales skilled the biggest progress when it comes to absolute {dollars} and insurance policies offered. Three quarters of entire life carriers reported constructive progress, together with 9 of the highest 10 carriers. 12 months up to now (YTD), entire life premium was 22% greater than gross sales within the first six months of 2020. Complete life represented 36% of the U.S. life insurance coverage market within the second quarter.

“Final 12 months, due to the shutdown, individuals had been unable to fulfill with their advisors in particular person, and we noticed vital progress in direct-to-consumer distribution for entire life merchandise. Within the second quarter 2020, D2C entire life gross sales rose by 33%,” famous Levenson. “In distinction, entire life gross sales progress this quarter was pushed by unbiased and affiliated agent gross sales because the vaccines grew to become obtainable and extra of the nation opened.”

Listed UL new premium grew 20% within the second quarter, up 17% YTD. Mounted UL new premium rose 7% for the quarter. Within the first six months of 2021, fastened UL premium fell 2%.
Listed UL represented 24% of complete the premium within the second quarter. Mounted UL market share was 8%.

Variable UL (VUL) new premium grew 69%, in contrast with prior 12 months outcomes, representing the fifteenth consecutive quarter of premium will increase. All however three VUL carriers reported double-digit will increase. YTD, VUL premium elevated 62% from prior 12 months. Whereas protection-focused VUL gross sales continued to extend (up 27% within the second quarter), accumulation-focused VUL gross sales jumped up 144% and claimed simply over half the brand new VUL premium.

Continued low rates of interest, sturdy fairness markets and up to date adjustments to tax legislation (IRC 7702) have made VUL merchandise extra enticing to shoppers, driving their progress over the previous a number of quarters. VUL held 11% market share within the second quarter. That is the best market share for VUL since 2008.

Within the second quarter, time period life new premium was 8% greater than prior 12 months with 65% of carriers reporting will increase. Within the first six months of 2021, time period life new premium additionally elevated 8%. Time period life market share was 21% within the second quarter.

“COVID-19 has raised shoppers’ consciousness concerning the significance of getting life insurance coverage protection. Almost a 3rd of shoppers (31%) stated they had been extra prone to buy protection due the pandemic,” famous Levenson. “That is so necessary as a result of too many Individuals dwell with a life insurance coverage protection hole, leaving their family members’ monetary safety in danger. As we have a good time Life Insurance coverage Consciousness Month in September and proceed our year-long Assist Shield Our Households marketing campaign, let’s double our efforts to teach Individuals concerning the significance of getting ample life insurance coverage protection.”

LIMRA’s Second Quarter 2021 U.S. Particular person Life Insurance coverage Gross sales Survey represents roughly 80% of the U.S. particular person life insurance coverage annualized premium market.

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