According to LIMRA International, individual life insurance sales for first quarter of 2006 rose 15 percent in new annualized premiums over the first quarter of 2005.
The latest survey conducted by LIMRA further shows that although the number of policies sold remained even with those sold during the same period last year, face amounts rose an average of 4 percent. Among the strongest increases, annual premiums of universal life and variable universal life products rose by 26 percent and 15 percent, respectively. This is only the second time in five years that VUL posted a double-digit quarterly increase, LIMRA noted.
Fixed-premium products showed premium increases of 5 percent, while term and whole life insurance showed premium increases of 3 percent.
Sales for variable life were down 14 percent in the quarter compared with the year before.
In first quarter of 2005, sales of all products were down except for UL, noted LIMRA Vice President Elaine Tumicki, head of LIMRA's product research. Early 2005 sales likely were depressed by potential changes to reserve requirements for UL and proposed legislation that would have permanently repealed the estate tax, LIMRA said.
Tumicki noted that the surge in 2006 sales may be related to several factors, including a stronger equities market, as well as premium financing and investor and corporate-owned life insurance. The group believes this year's first-quarter sales were also boosted by a strong stock market.
