A new report from LIMRA found sales of life insurance policies increased during the first three months of the year, showing more Americans were putting a priority on protecting their family's financial interest with life insurance.
According to the report, total life insurance sales climbed by an annualized 8 percent from the first quarter of 2010, with universal policies in particular showing strength. Sales of universal insurance climbed significantly, with 65 percent of companies surveyed reporting higher sales of those products. Term life insurance slipped 11 percent on a quarterly basis, but the products remain popular for consumers looking for simple and effective coverage for their family.
A hybrid term-universal product, which starts as term life insurance and then coverts to whole life after a set number of years, helped pushed the universal figures higher, said the report. Prices on standard term life insurance increased briefly last year to counteract loss, but experts said they should drop again in 2011, making term life insurance more affordable.
Term life insurance is often cited as the simplest coverage because it offers income replacement only, with little room for investment. Universal life can be useful for consumers who want to use their life insurance as an investment.