Devoted to the Insurance industry and all thing related

Two of the newest kids on the block in the life insurance policy world, Variable Universal Life and Universal Life, received an influx of annualized premiums according to a LIMRA news release.  The old tried and true duo of term and whole life saw a smaller growth in premiums in the first nine months of 2007.

“All products were up through the first nine months of 2007, especially universal and variable universal life, which were up 9 and 10 percent (23 and 55 percent for the quarter).  Year-to-date, term life grew seven percent and whole life grew three percent.

The biggest portion of the sales increases seen through the third quarter stem from the brokerage channel.  In fact, with the exception of WL, all products were up especially UL and VUL which were up 16 and 19 percent for the year and 28 and 110 percent for the quarter.”  

As the stock market goes so goes VUL sales.  Those underlying sub accounts of mutual funds are not too easily sold when the stock market is tanking or struggling.  Just try and sell a VUL when the mutual funds are showing negative returns. 

Of course most VUL products also offer bond and money market funds as an alternative to stock funds.  With the added tax benefits of a permanent variable universal life insurance policy and the premium flexibility these policies can still fly off the shelves.