Indexed universal life (IUL) products were the dominant driver behind premium growth in second quarter according to LIMRA, Windsor, CT.
Consumers appear to be interested in being able to build cash value growth while protecting their principal and IUL products allow them to do so, rendering the products an alluring option for consumers.
Over the first half of 2012, IUL sales were up 29 percent, accounting for over 25 percent of all universal life (UL) sales.
Total UL annual premium grew six percent in the second quarter, growing three percent in the first six months of 2012. There have been 13 continuous months of policy count growth while in the first six months of 2012, UL policy count grew three percent.
Overall UL sales were weakened by lifetime guarantee (LTG) UL premiums, which dropped eight percent. Although LTG products accounted for the highest share of new UL premium (35 percent), IUL products are narrowing the gap; in 2009, there was a 40 percentage-point gap between LTG UL and IUL. Today, that gap has closed to just ten percentage points.
