LIMRA reported individual life insurance sales grew 4 percent in annualized premium for 2011, marking the second year of continued growth. In the fourth quarter of 2011, life insurance premiums increased 2 percent year-over-year, illustrating the growing popularity of the valuable financial products.
LIMRA found variable universal life insurance premiums jumped 22 percent in 2011, and 36 percent in the fourth quarter compared to the third. Universal life premiums increased 3 percent in 2011, and the number of universal policies sold grew 8 percent compared to 2010.
Term life insurance coverage represented 65 percent of individual life insurance premiums and nearly 40 percent of all life insurance policies in the United States.
Regarding the future of the life insurance industry, research from WestPark Capital suggests life insurance premiums have become more affordable over the past 25 years and will continue to be readily available to consumers in the years to come. With consumers living longer, new products are being developed with extended guarantees, enhanced death benefits and long-term care riders to provide more benefits to customers.