Wednesday, May 30,2012
By: Carrie Van Brunt-Wiley
Industry data shows that the value of individual life insurance policies increased during the first quarter of this year.
LIMRA says that total life insurance premiums increased 3 percent compared to the year before. At the same time, the number of policies increased by 5 percent. The group said that much of the increases were the result of the rising popularity of whole life policies, which accounted for 50 percent of all new individual policies.
"The biggest driver behind both total premium and policy count growth continues to be whole life," said Ashley Durham, senior analyst of LIMRA product research. "It remains very attractive to consumers looking for security of premium and cash-value guarantees along with lifetime coverage."
The value of term life insurance policies also increased during the quarter, rising 1 percent in terms of premiums. The majority of companies also said that their term life sales had increased.
Other recent studies have said that policy sales might be even more robust if consumers understood their actual prices. A poll conducted by LIMRA and the LIFE Foundation found that consumers thought that polices were nearly three times as expensive as they actually were.
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