According to LIMRA's U.S. Individual Life Insurance Sales report, total individual life insurance new annualized premium increased 4 percent in the first half of 2011.
The report found annualized premium sales for death benefit guarantee universal life products dropped 3 percent from the second quarter of 2010, but held 45 percent of the UL market share in the second quarter. Universal life policy count grew 11 percent in the second quarter, as did the whole life insurance policy count, which climbed 4 percent for the quarter and 6 percent year-to-date.
Ashley Durham, senior analyst for LIMRA product research, said despite slowed second quarter life insurance sales, premium and policy count increased by 1 percent compared to the second quarter in 2010.
"Part of the slowdown in growth is a reflection of a few companies moving away from lifetime death benefit guarantee universal life products," Durham said.
To help boost sales of UL products, Lincoln Financial Group recently announced its Lincoln LifeReserve indexed universal life policy, designed for the accumulation of assets with life insurance protection. The new indexed UL will offer a source of income for expenses that is tax-advantaged.
Added features to the indexed UL include competitive rates, a guaranteed loan rate and over-loan protection and no account allocation restrictions.