Term life insurance sales maintained their upward trajectory in the second quarter of 2024, putting the category on course for a record year after closing its sixth consecutive quarter of growth, according to Limra's US Life Insurance Sales Survey.
The official results show term life premium rose by 1 percent to $776 million over the three-month period, with eight of the top 10 carriers on Limra's leaderboard reporting gains. Policy count also saw a 1 percent increase, attributed to improvements in online platforms and more competitive products and rates.
In the first six months of 2024, term life insurance premiums reached $1.5 billion, up 2 percent compared to the same period in 2023. Term products held a 20 percent share of the US individual life insurance market.
“Term life premium is on pace to reach $3 billion in 2024, a new sales record for the product,” John Carroll, senior vice president at Limra, said in a statement.
"The need for life insurance continues to grow, with more than 100 million Americans — and more than half are younger and middle-income adults — acknowledging they live with a life insurance coverage gap."
The overall US individual life insurance market remained stable in the second quarter, with new annualized premium totaling $3.98 billion, unchanged from the prior year. However, policy count declined by 1 percent.
In contrast, whole life insurance sales continued to struggle amid high interest rates. Whole life premium dropped by 7 percent year-on-year in the second quarter to $1.48 billion – driving year-to-date new premiums to $2.9 billion – with policy count down by 5 percent.
“Whole life sales, which represent the largest proportion of the U.S. life insurance market, have struggled under a higher interest rate environment in the first half of 2024,” said Karen Terry, assistant vice president at Limra.
With the Fed expected to lower interest rates in the fall, notwithstanding the slashed prospects of a jumbo September cut, she said whole life sales growth could experience a second wind in the second half.
The data also revealed growth in other segments. Fixed universal life premium rose by 5 percent to $277 million, while variable universal life saw a more sizable 10 percent jump in premium to reach $530 million during the second quarter. Indexed universal life insurance, meanwhile, clocked $917 million in new premiums, with policy sales surging 12 percent in the second quarter amid continued growth in the mid-to-lower case market.
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