Individual Life Insurance Combination Product Premium Falls 2% in 2018

After three consecutive years of growth, total new premium for individual life combination products dropped 2% to $4.3 billion in 2018, according to LIMRA’s 2018 Individual Life Combination Products Annual Review. There were 404,000 policies sold in 2018, a 2% increase, compared with 2017 results.

“The decline in total premium is a result of more companies shifting to introduce recurring premium options. To put this into perspective, 61% of policies were sold on a recurring premium basis in 2011. By 2018, 93 percent of policies sold were recurring premium,” said Daniel McAllen, associate analyst, LIMRA Insurance Research. “This shift suggests a growing movement to attract mass-affluent buyers who may not have the financial wherewithal to invest a large lump sum all at once but still want the dual protection these products offer.”

Life combination products provide life insurance coverage with long-term care or chronic illness coverage, an attractive value proposition to consumers, according to LIMRA consumer research. According to LIMRA data, more than half of Americans (53%) are worried about affording long-term care services if needed. Six in 10 consumers would consider purchasing a combination product to offset long-term care costs they may face in retirement.

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