September is National Life Insurance Awareness Month, and many U.S. consumers are still without coverage. However, growing understanding and awareness of the benefits of life insurance have convinced more people to seek out coverage.
According to the Life Insurance and Market Research Association, total sales of individual life insurance policies rose in the United States by 8 percent in the first quarter of 2011 compared to the first quarter in 2010. Of the sales, universal life annualized premium grew 14 percent and policy count grew 18 percent.
Term life insurance policies dropped 11 percent in premium and policy count for the quarter, despite offering the best coverage for the lowest premiums. LIMRA senior analyst Ashley Durham sad that some insurance companies had to increase the price of term insurance while others dropped the product lines all together.
"Companies had to increase the price of premiums to back up the reserves for these polices," Durham said. "Companies expect term prices to go down once the principles-based reserving initiative at the National Association of Insurance Commissioners is eventually completed."
In honor of National Life Insurance Awareness Month, United Security Life and Health recently pledged to donate $10 to the Fisher House Foundation for every new life insurance application written in the month of September. The Fisher House's Heroes' Legacy Scholarship for children of fallen and disabled service members helps provide funding for the education of affected families and children.
"We wanted to not only put forth additional resources to educate people about the importance of life insurance, but financially support a group of individuals whose parents have given the ultimate sacrifice for each and every American," said Sandra Horn, president of United Security Life and Health.