IQ Financial Advisor – Content Page

According to a recent report, sales of indexed universal life insurance increased in the second quarter of 2022, while sales of fixed universal life insurance fell.

Index-linked life insurance sales reached $685.5 million in the second quarter, a total of 12% higher than the same quarter last year, writes sister publication FA-IQ Life Annuity Specialist, citing a report from a market research firm. Wink.

National Life took the lead in the segment, accounting for 13.9% of index life insurance sales, according to the publication. The other five major carriers were transamerica, Pacific life, At national scale and Sammons Financialwrites the life annuity specialist.

Meanwhile, fixed universal life insurance sales were $104.7 million in the second quarter, down 27% from the same quarter in 2021, according to the publication.

Yields on two-year Treasury bills rose 3.5% on September 1, the highest since 2007, allowing carriers to raise credit rates on life insurance products to attract more consumers, writes Life Annuity Specialist.

Sheryl MooreCEO of Wink, said it was “sad” that the improving interest rate environment did not help slow the decline in sales of traditional universal life insurance, according to the publication.

Whole life insurance sales, meanwhile, fell 5.8% from a year earlier to $1.1 billion, writes Life Annuity Specialist. Earlier this month, Aite Novarica analyst John Keddy said sales could be affected by a slowdown in death rates, according to the publication.

The U.S. death rate rose 3% to 3.5 million in 2021, after climbing 19% to around 3.4 million in 2020, writes Life Annuity Specialist, citing data from the Centers for Disaster Control and Prevention.

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