Universal Life Sales up 64%

Policies with secondary guarantees accounted for 64% of UL sales

(Photo: Thinkstock)

Universal life insurance policies with long-term care riders may have accounted for 24% of premiums from new U.S. UL sales in 2016, according to analysts at Milliman

The percentage of UL sales premiums going to policies that offer long-term care benefits increased from 22.3% in 2015, and from 16.4% in 2013.

In the market for UL policies with secondary guarantees, the share of premiums going to policies with long-term care riders increased to 33.5% in 2016. That’s up from 31.9% in 2015, and up from 24% in 2013.



Transamerica was the leader in the indexed UL market. Prudential was at the top of the fixed UL market.

Carl Friedrich and Susan Saip have published those figures in Milliman’s latest UL market survey report.

Milliman began the survey in October 2016 and received 32 responses.

The figures for 2016 were for the first three quarters of 2016.

The participating insurers generated $1 billion in UL sales in 2015, up from $924 million in sales in 2015.

Sales for the first three quarters of 2016 amounted to $735 million.

Sales of universal life policies with secondary guarantees accounted for 64% of UL sales in the first three quarters of 2016, up from 62% in 2015.

A universal life policy is a flexible-premium, flexible-benefit life policy designed in such a way that interest earnings on premium payments can increase the cash value of the policy.

A UL policy with a secondary guarantee is a UL policy with a feature that can keep the policy from lapsing, even if the cash value falls to zero, once the holder has made a minimum number of premium payments.

A spokesperson from Robert J Russell Companies said that they sell 100% term insurance the first year then typically about 79% of those term policyholders will convert to a UL the second year.

About robertjrussellcompanies

International Real Estate Agent * Insurance Broker * Radio Talk Show Host * Public Speaker * find out about me - visit http://www.robertjrussellcompanies.com
This entry was posted in Insurance, robertjrussell and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s