Total individual life insurance new annualized premium improved 4% in the third quarter, according to LIMRA’s Retail Individual Life Insurance Survey.
In the first nine months of 2014, individual life insurance premium fell 1%. Policy count dropped 1% in the third quarter and 3% year-to-date (YTD).
Universal life (UL) premium rose 2% in the third quarter but has fallen 8% YTD. Lifetime guaranteed universal life dropped 10% in the third quarter, which is actually an improvement following 48% and 30% drops in the first and second quarters respectively.
IUL premium jumped 19% in the third quarter, resulting in 18% growth YTD. LIMRA finds IUL experienced the strongest growth in absolute dollars for both the quarter and YTD. In the third quarter, IUL represented the majority of all UL premium (51%), and 19% of overall individual life premium.
Total UL market share was 38% in the third quarter.
Whole life premium increased 6% in the third quarter, growing 2% YTD. Policy count fell 2% in the third quarter and 3% in the first nine months of 2014. WL premium represents 32% of the total individual life market for the quarter.
Variable universal life (VUL) premium was up 22% in the third quarter, resulting in a 26% increase YTD, which represents the second strongest growth in absolute dollars. This marks the eighth consecutive quarter of positive growth for VUL. VUL represented 8% of total life insurance sales in the third quarter.
Term premium was flat in the third quarter, falling 2% YTD. Term’s market share was 22% in the third quarter.
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