Annualized premiums from sales of indexed life insurance increased more than 10%, but sales of whole life insurance and traditional fixed universal life insurance fell, Wink analysts say.
Issuers told Wink that, for typical buyers of fixed universal life policies, the primary pricing objective was accumulating cash, rather than maximizing the death benefit.
What It Means
Some clients are accumulating cash in their life insurance policies, as well as in savings accounts, mutual funds and other financial arrangements.
Wink is a life and annuity market tracking firm based in Des Moines, Iowa. Its U.S. individual life survey figures reflect only the performance of non-variable, permanent life products, not of products such as term life or variable universal life.
Here’s how the Wink sales life numbers have changed since the third quarter of 2021:
- Indexed life: $671 million (+11%)
- Whole life: $1.1 billion (-0.1%)
- Fixed universal life: $96 million (-17%)
The latest numbers are based on survey responses from 49 indexed life issuers, 73 whole life issuers and 58 fixed universal life issuers.