The U.S. life and health insurance market has seen its third consecutive year of premium growth as total new premiums for life combination products rose 18 per cent to US$4.1 billion last year.
According to LIMRA’s 2017 Individual Life Combination Products Annual Review, life combination product market share of individual life insurance premium has increased 10 percentage points over the past two years and represents 25 per cent of total new U.S. life insurance premiums last year.
Life combination products meld life insurance with long-term care or chronic illness coverage.
“Life combination product premium has increased by double-digits in four of the last five years. Much of this growth may be attributed to the attractive value proposition these product offer to consumers,” said Elaine Tumicki, corporate vice president and director LIMRA Product Research. “Our consumer research finds more than a third of U.S. consumers said they would consider a combination product because no matter the circumstances they or their beneficiaries would benefit.”
LIMRA’s study found there were 260,000 policies sold in 2017, five per cent higher than 2016 results.
“This shift suggests a growing movement to attract mass-affluent buyers who may not have the financial wherewithal to invest a large lump sum all at once but still want the dual protection these products offer,” said Tumicki.
Sales of all product types increased in 2017: universal life combination premium rose 20 per cent, whole life combination premium was up 13 per cent and variable universal life combination products grew 24 per cent in premium in 2017. Universal life combination products continue to hold the majority of the market share by every measure (premium, policy count and face amount).