Mid-Year Term Sales Report Card

In March of this year, LIMRA reported both good sales news and high expectations for term insurance sales. According to a news release distributed in March, 2022, LIMRA reported, “In 2021, term new premium increased 5%, compared with 2020 results. This represents the highest premium growth for term premium since 2007. In the fourth quarter, term new premium slipped 1%, compared with fourth quarter 2020. LIMRA is projecting term life premium to grow as much as 6% in 2022, propelled by continued consumer interest and online availability.”

But three months later, in June, 2022, the news on term insurance sales was not so rosy. In another news release distributed June 16, 2022, LIMRA reported, “Term product sales fell for the second consecutive quarter. In the first three months of 2022, term new premium dropped 2% from prior year. Six in 10 companies reported declines in term sales, including half the top 10. Policy count dropped 8% in the quarter. Term’s market share dropped to 18%.”

So although we have a lot of time left for term insurance sales to increase for 2022 and for that 6% projected increase to be realized, the report card on term insurance for mid-year 2022 seems to say, “Needs Improvement.”