Life Application Activity Returns to Pre-COVID Normal

News August 05, 2022 at 11:47 AM

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U.S. life insurance applications from consumers fell by 7.7% year over year in July, according to MIB Group's activity report released this week. Activity was down by 13% from July 2020, when a coronavirus-related spike occurred, and was flat compared with the previous year. This suggests that policy purchases have returned to something like normal.

A similar pattern was evident for the year to date: Applications declined by 6.3% from a year earlier and were flat for the previous two years.

July activity was down by 7.3% from June, which is consistent with normal seasonal trends, MIB Group noted.

Policy purchases by the 71-and-older consumer group continued to outpace all other age groups, rising by 1.3% in July, while younger applicants' purchases declined.

According to the report, face amounts of more than $5 million were flat for the year through July, while all other face amounts declined. Year over year, all face amounts recorded declines, those of $5 million and more by double digits.

Growth of face amounts up to $250,000 by consumers 71 and older in July increased year over year while all other categories experienced double-digit declines.

July saw declining YOY activity for all product types experienced year-over-year declines: term life 6%; universal life 5.6%; and whole life 16.2%.

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