The results of a LIMRA research study have shown that the sale of combination life insurance skyrocketed in 2010, with sales rising by 62% to reach $1.2 billion.
According to research actuary Catherine Ho, from LIMRA, this 2010 increase in the overall sales of combination life insurance products was significant, especially when considering that there had already been growth in the double digits in 2009.
In a LIMRA press release, Ho stated that “In addition to carriers boosting their marketing campaigns, consumers’ growing desire for an alternative to stand-alone long term care insurance (LTCI) has driven sales of these products.” She added that among many buyers, these products are purchased instead of stand-alone LTCI, as they are often more affordable.
Within the individual life insurance marketplace as a whole, based on new premiums, the new sales of combination products made up 6 percent, as 2010 saw the sale of over 26,000 new policies. The result was a 69 percent increase in the policy count of combination life insurance products over those in 2009.
That said, sales of universal life and whole life combination products also spiked in 2010, when compared to those of 2009. In fact universal life combination products are the leaders in sales within this marketplace in the sale of new policies and insurance, as well as in premiums.
When compared to 2009, the new premiums of 2010 increased by 58 percent, meaning that it made up 80 percent of the overall combination market. Equally, there was an augmentation of 60 percent in policy count over the sales results of 2009.