Some of the same forces that have been increasing indexed annuities in recent years pushed up sales of indexed life insurance in the second quarter, according to new survey data from Wink.
Sales of the kinds of U.S. individual non-variable, cash-value life insurance policies that Wink tracks increased 7.6% between the second quarter of 2022 and the latest quarter, to $1.9 billion,
Here's what happened to sales of three types of cash-value policies, year over year:
- Indexed life: $813 million (+18.5%)
- Whole life: $1.1 billion (-0.9%)
- Fixed universal life: $102 million (-2.8%)
Sales of indexed life products were the highest Wink has recorded.
What It Means
Many clients like the idea of buying life insurance with a death benefit that can grow.
Many insurers like selling a life insurance policy set up in such a way that they can use ordinary stock index derivatives to manage the risk associated with managing the assets supporting the policy obligations.
