Whole life insurance sales have held strong so far this year, according to LIMRA. The group reports that sales of the product increased 15 percent during the first three quarters of the year.
LIMRA product research senior analyst Ashley Durham notes that while sales have decreased towards the later months of the year, one has to take into consideration the time frame being examined.
"It's important to remember that third quarter 2010 is being compared with the time when the double-digit increases began," says Durham. "As of the end of September, whole life represented 30 percent of overall annualized premium sales."
Consumers should carefully weight their insurance options before settling on a specific product. Some may be put off by the higher premiums associated with a whole life policy. However, such plans cost more because a portion of the money goes into a savings program. Over time, the cash value of the policy grows. Also, it's important to note that premiums remain consistent throughout a whole life policy, whereas monthly payments increase over time for term accounts.