Indexed universal life sales rose in the second quarter of 2022 as fixed universal life sales dropped, according to a recent report.
Sales in indexed life reached $685.5 million in the second quarter, a total 12% greater than that of the same quarter last year, FA-IQ sister publication Life Annuity Specialist writes, citing a report from market research firm Wink.
National Life took the lead in the segment, accounting for 13.9% of indexed life sales, according to the publication. The other top five carriers were Transamerica, Pacific Life, Nationwide and Sammons Financial, Life Annuity Specialist writes.
Meanwhile, fixed universal life sales were $104.7 million in the second quarter, which was down 27% from the same quarter in 2021, according to the publication.
Yields on two-year Treasury notes rose 3.5% on September 1, the highest since 2007, allowing carriers to raise crediting rates on life products to lure more consumers, Life Annuity Specialist writes.
Sheryl Moore, chief executive officer of Wink, said it’s “sad” that the improved interest rate environment hasn’t helped slow down the drop in traditional universal life insurance sales, according to the publication
Whole life sales, meanwhile, fell 5.8% from a year earlier, to $1.1 billion, Life Annuity Specialist writes. Earlier this month, Aite-Novarica analyst John Keddy said sales could be affected by a slowdown in mortality rates, according to the publication.
The U.S. death rate rose 3% to 3.5 million in 2021, after soaring 19% to around 3.4 million in 2020, Life Annuity Specialist writes, citing data from the Centers for Disease Control and Prevention.