Bad economy not all bad for life insurance industry

Oct 06, 2011

The bad economy may not be all that bad for life insurance.

According to M. Bryan Freeman in the Agent's Sales Journal, the down economy hasn't meant much down time for the life insurance market. He said he has been writing about life insurance in a bad economy for years and has not seen that much of an ill effect on the industry.

"In fact, our recent recession can mean good things for financial professionals involved in bringing life insurance and life settlements to their clients," Freeman said. "One of the benefits is obvious: Consumers ranging from aging Baby Boomers to their parents may seek alternative financial options to alleviate anxieties about liquidity."

He said there has been a decline in settlement amount offers, but that's not solely due to the economy. Freeman writes that the challenging economy means institutional and qualified investors are bringing money into the secondary market for life insurance as they look for other investment vehicles that are not tied to the market.

According to U.S. News & World Report, the poor economy may be part of the reason why single people buying life insurance has increased by 10 percent. The biggest growth has been among people in their 20s, who have experienced an increase of 24 percent in life insurance purchases.

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