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Life insurance.

TRENDS

LIFE INSURANCE SALES DIVE, PRICES RISE

Tough first half of 2009 for the life insurance industry. After a 26 percent dive in the first quarter, individual life insurance annualized premium dropped 20 percent in the second quarter, according to LIMRA's U.S. Individual Life Insurance Sales report.

Overall, premium sales fell 23 percent for the year so far, and no product line was spared.

"Despite recording the steepest six month decline since the second half of 1942, the second quarter gave us reasons to be hopeful," said Ashley Durham, senior analyst, LIMRA product research. "Forty percent of companies were able to increase their total individual life sales over the second quarter of 2008 (this compared to less than 30 percent in Q1)."

Variable sales (with the strongest ties to the market) continue to suffer the most, down about 50 percent for the second quarter and 55 percent for the first half of the year.

Universal life sales were down 29 percent for the quarter and 27 percent for the first six months of 2009. This is the fourth consecutive quarter of double-digit declines. In addition to the poor economy, another likely factor affecting UL premium is a decline in sales to senior buyers, which tend to be higher face amounts and represented more than half of annualized premium sales in 2008.

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Whole life and term continue to be the most resilient. Whole life fell three percent in the second quarter and four percent at the mid-year mark; while term dipped only three percent for both the quarter and year so far. Both products have maintained their 28 percent market share of new premiums issued.

Overall, policy count continued to drop in the second quarter, down four percent, six percent YTD. Every product except UL, which increased eight percent, experienced declines in the second quarter.

On average, companies sold slightly smaller policies during the first half of 2009 than they did this time last year. The average amount of coverage purchased for most products remained steady; however, new UL policies tended to be smaller, 18 percent lower than those purchased during the first six months of 2008.

ACACIA LIFE INSURANCE CO.--A UNIFI COMPANY

Product name: Excel LifeValue UL

800-319-6903/www.unificompanies.com

AMERICO FINANCIAL LIFE AND ANNUITY INSURANCE COMPANY

Product name: Lifecrest Index

800-231-0801, Ext. 8410/www.americo.com

AVIVA LIFE AND ANNUITY COMPANY

Product name: Advantage Builder II

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY

Product name: Guarantee UL Solution

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY

Product name: Lifetime Builder II

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY

Product name: Patriot Solution II

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY OF NEW YORK

Product name: Capital Solution II

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY OF NEW YORK

Product name: Empire Solution II

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY OF NEW YORK

Product name: Guarantee UL Solution

800-367-3669/www.avivausa.com

AVIVA LIFE AND ANNUITY COMPANY OF NEW YORK

Product name: Life Builder

800-367-3669/www.avivausa.com

AXA EQUITABLE

Product name: Athena Universal Life

800-924-6669/www.axadistributors.com

BANKERS LIFE & CASUALTY COMPANY

Product name: Turning Point

800-231-9150/www.bankers.com

COLONIAL LIFE & ACCIDENT INSURANCE COMPANY

Product name: Universal Life 1000

803-798-7000/www.coloniallife.com

CONSECO INSURANCE COMPANY

Product name: Conseco LifeOptions

888-266-6002/www.conseco.com

EMC NATIONAL LIFE COMPANY

Product name: Ultra Choice UL

800-232-5818/www.mcnl.com

GPM LIFE

Product name: UNI -Mark

800 938-4765/www.gpmlife.com

GUARDIAN LIFE

Product name: EstateGuard SUL

800-441-6455/www.guardianlife.com

GUARDIAN LIFE

Product name: Survivorship Universal Life Secondary Guarantee

800-441-6455/www.guardianlife.com

GUARDIAN LIFE

Product name: UltraLife Gold

800-441-6455/www.guardianlife.com

GUARDIAN LIFE

Product name: Universal Life Secondary Guarantee

800-441-6455/www.guardianlife.com

ILLINOIS MUTUAL

Product name: ValueLife Protector Universal Life

800-437-7355, Ext. 303/www.IllinoisMutual.com

JACKSON NATIONAL LIFE INSURANCE COMPANY

Product name: Jackson Accumulator UL

800-873-5654/www.jackson.com

LIFE INSURANCE COMPANY OF THE SOUTHWEST

Product name: Foundation

214-638-7100/www.lifeofsouthwest.com

LIFE INSURANCE COMPANY OF THE SOUTHWEST

Product name: Harbor

214-638-7100/www.lifeofsouthwest.com

LIFE INSURANCE COMPANY OF THE SOUTHWEST

Product name: Horizon

214-638-7100/www.lifeofsouthwest.com

LIFE INSURANCE COMPANY OF THE SOUTHWEST

Product name: SecurePlus Paragon Indexed UL

214-638-7100/www.lifeofsouthwest.com

LIFE INSURANCE COMPANY OF THE SOUTHWEST

Product name: SecurePlus Provider Indexed UL

214-638-7100/www.lifeofsouthwest.com

LINCOLN FINANCIAL DISTRIBUTORS

Product name: LifeGuaranteeUL

866-888-9822/www.lfg.com

M&O MARKETING

Product name: Universal Life

800-228-5964/www.mandomarketing.com

METLIFE INVESTORS USA

Product name: Guarantee Advantage UL

800-638-5433/www.metlife.com

MIDLAND NATIONAL

Product name: Essential Guaranteed UL

800-843-3316/www.mnlife.com

MIDLAND NATIONAL

Product name: UL-CV

800-843-3316/www.mnlife.com

MIDLAND NATIONAL

Product name: UL-DB

800-843-3316/www.mnlife.com

MIDLAND NATIONAL

Product name: XL-CV2

800-843-3316/www.mnlife.com

EDITORS NOTE: This source list represents those companies that chose to participate and that responded by the deadline, and has been edited for space.

Source: [c] 2009 Summit Business Media
COPYRIGHT 2009 Summit Business Media
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

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Title Annotation:2010 PRODUCT & TREND GUIDE
Publication:Boomer Market Advisor
Date:Dec 1, 2009
Words:832
Previous Article:Annuities.
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