LIMRA is forecasting that individual life insurance sales in the United States will “grow slowly but relatively steady over the next several years.”
LIMRA predicts overall new annualized premium to grow two per cent in 2018 and 2019. “Because of the anticipated slowdown in the growth rates of disposable income and bond rates, LIMRA forecasts growth to dampen to one percent annually in 2020 and 2021.”
LIMRA says total premium for life insurance stood at $14.1 billion in 2016. It forecasts that premium will rise to $14.4 billion by end of 2017 and $14.7 billion in 2018. “In 2019, 2020 and 2021, LIMRA expects total premium to be $15.0 billion, $15.2 billion and $15.4 billion respectively.”
Universal life premium is expected to rise three per cent in 2017. This will be a result of “growth in indexed UL premium coupled with a decline in UL products with lifetime guarantees,” says LIMRA. Whole life premium growth is expected to be flat in 2017 and term life premium will slow after a more moderate increase in 2017.