Whole Life Policies Drive Growth in Life Insurance

The recent sales trend in the life insurance industry has shown a steady growth from the last year’s insurance sales trend. The insurance premiums collected this year so far is 3% more than what was collected the previous year. Moreover, the number of policies sold has gone up by 5%. Overall, it has been observed that certain universal life policies and the whole life polices drive growth in life insurance industry recently.

Whole Life Policies

The whole life premiums collected this year have gone up by 10% and the policies issued have gone up by 6%. Those numbers are quite high compared to those of other policies in the market, influencing the overall insurance industry growth.

Term Life Policies

Even though term life policies are generally preferred over their permanent counterparts, recent trend shows no growth in their premium collection. The collection percentage has stayed at 1% since the previous year. However, the number of policies issued has gone up by 4%.

Universal Life Policies

The general trend of the universal life policies has shown a mixed result. Certain universal policies have shown a two-digit growth while certain others a two-digit decline. The policies with lifetime guarantee seem to be the hardest hit, owing to the recent investment scenario. Premium collections of these policies have declined by 12%. However, indexed life policies have seen a steeping growth of 22% in premium collection and 41% in policy count.

Market Influence in Decision Making

In the market, it might be great news that whole life polices drive growth in life insurance; however, consumer decisions cannot be based on this market trend. As usual, any buyer must consider his or her personal needs and the needs of his or her family in choosing the right policy. In general, the growth or decline in the industry should not affect your decision of choosing the right policy. However, if you are going for a policy with market investment option, then you need to consider the market performance, as fluctuations in the market would affect the returns of the investment.