Individual Life Premium Improves Four Percent in Third Quarter 2014

December 9th, 2014, Comments Off.

Total individual life insurance new annualized premium improved four percent in the third quarter of 2014, according to LIMRA’s Retail Individual Life Insurance Survey.

In the first nine months of 2014, individual life insurance premium fell one percent. Policy count dropped one percent in the third the quarter and three percent year-to-date (YTD).

Universal life (UL) premium rose two percent in the third quarter but fell eight percent YTD. Lifetime guaranteed universal life dropped 10 percent in the third quarter, following 48 percent and 30 percent drops in the first and second quarters, respectively.

IUL premium jumped 19 percent in the third quarter, resulting in an 18 percent growth YTD. LIMRA finds IUL experienced the strongest growth in absolute dollars for both the quarter and YTD. In the third quarter, IUL represented the majority of all UL premium (51 percent), and 19 percent of overall individual life premium. Total UL market share was 38 percent in the third quarter.

Whole life (WL) premium increased six percent in the third quarter, growing two percent YTD. Policy count fell two percent in the third quarter and three percent in the first nine months of 2014. WL premium represents 32 percent of the total individual life market for the quarter.

Strong growth in VUL premium
Variable universal life (VUL) premium was up 22 percent in the third quarter, resulting in a 26 percent increase YTD. This represents the second strongest growth in absolute dollars and marks the eighth consecutive quarter of positive growth for VUL. VUL represented eight percent of total life insurance sales in the third quarter.

Term life insurance premium was flat in the third quarter, falling two percent YTD. Term’s market share was 22 percent in the third quarter.

View the latest data table on U.S. life insurance sales trends.


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A Letter to My Colleagues

December 8th, 2014, Comments Off.

Hello Industry Colleagues:

I can’t believe it’s already December! I remember that almost exactly at this point last yea, I saw an email from the LIFE Foundation (now Life Happens) about its Real Life Stories program. I’ll be honest. I didn’t give it a lot of thought—it’s a pretty busy time of the year. So I set it aside.

But then it stuck with me. After all, the truth was, I did have a great story. My friends Scott and Cathy Young were an amazing couple—truly one of the times I’ve been most proud to be in this industry. So I took a few minutes and completed an application. That simple act changed everything for me.

A few months later, Life Happens told me that the story I submitted had been selected as one of the four honorees. Wow! That was pretty exciting, but it didn’t fully hit me until a few weeks later when a video crew and staff showed up and produced an amazing video.

What an amazing experience that was, but especially for Cathy! It helped her tremendously knowing that she was able to touch many with our story. Of course, it didn’t hurt that we both received an all-expenses paid trip to San Diego to speak at the NAIFA Career Conference and Annual Meeting. To stand in front of thousands of fellow agents and get a standing ovation was the icing on top.

Or so I thought. You see, what I really didn’t expect—and the real reason for my email today—is what it did to my business. My video was included in Life Happens’ Life Insurance Awareness Month advertising, and all of a sudden I was getting calls from past clients, referrals of clients, and more. I couldn’t believe it. Fast forward one year later, and I’m still feeling the residual effects of the experience. The transformative effect on my business has been truly stunning.

So, I’d encourage you to do what I did—submit an application to the Real Life Stories program. It takes five minutes, and I promise you, the personal reward you’ll receive through an immensely satisfying and gratifying process is worth the effort 100 times over. Think about it—it’s worth your time.

Yours truly,

Steve J. Sabo
Financial Advisor
Sabo Financial Group
2014 Real Life Stories recipient