Most Americans are fully aware of the difficult economic and employment conditions that continue to plague our nation. However, when consumers seek life insurance coverage in this environment, they appear to favor term life insurance over other forms of coverage.
New data recently released by LIMRA shows an overall decline in life insurance premiums for the second quarter of 2009. While Variable life insurance and Universal life insurance premiums both saw a double-digit decrease, term life insurance premiums only decreased a modest 3 percent. The average policy coverage amount (face amount) for term life insurance was the same as last year.
While economic recessions do not typically impact life insurance sales negatively, LIMRA mentioned in its report this particular recession is especially deep and prolonged.
Source: LIMRA International