According to a new report from LIMRA, total individual life insurance premium grew by 3% in the first quarter of 2012 compared to the first quarter of 2011. The report also shows that overall policy count rose by 5% during this same time.
This growth was driven by whole life sales which, according to senior analyst Ashley Durham, “remains very attractive to consumers looking for security of premium and cash-value guarantees along with lifetime coverage”. Whole life premiums increased by 10% this quarter with a 5% increase in policy count.
Total Universal Life premiums held flat in the first quarter while its policy count grew by 5%, which is the 12th consecutive quarter of growth in policy count. Although it was flat, Universal Life still holds the highest market share at 39%, which is still 7 percentage points higher than whole life.
Term life insurance sales experienced a slight increase in premiums in the first quarter of 2012 with a 1% increase compared to the first quarter of 2011. It’s policy count grew by 4%.