WINDSOR, Conn., Dec. 1, 2008 – New annualized premium for individual life insurance dropped 11 percent in the third quarter of 2008, according to LIMRA’s sales survey report.
“Variable life (VL) and variable universal life (VUL) products saw the steepest decline, plunging 33 percent for the quarter,” said Ashley Durham, LIMRA analyst for product research. “Given the current equity market environment, it’s not surprising that variable products took the biggest hit. Not only are individual VUL sales suffering, a number of companies have noted that corporate owned and private placement sales are much lower than they were this time last year.”
After seven straight years of considerable growth, universal Life (UL) premium is experiencing a significant decline in 2008. Third quarter premium dropped 12 percent over the same period in 2007 and is down two percent year-to-date.
LIMRA reports term sales are holding their own, with new premiums flat for the quarter and down one percent YTD. About 45 percent of the participating term writers have increased their sales over the first nine months of 2007.
Policy count for all individual life products continued to drop a bit—down one percent for the quarter and YTD.
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