As reported in the August 2011 issue of the Insurance and Investment Journal, LIMRA discovered that life insurance premiums for all networks combined increased by 9% in the first quarter of 2011 compared to the same quarter in 2010.
Also, if we look at premiums, whole life insurance sales advanced by 19%, compared with 18% for universal life for the same comparison period. However, term premiums fell by 10%.
“The independent insurance salespeople had the most vigorous increase in the first quarter,” stated LIMRA. Whole life sales in the independent advisor network increased by 35% between the first quarter of 2010 and 2011. Sales of universal life rose by 21% during this period. The independent network also increased the number of policies sold, along with the monetary size of the policies.
This increase may be partially related to the fact that many insurance companies were in the process of raising the rates on their level cost universal life policies and non-participating whole life policies. This gave consumers and brokers the added incentive to purchase larger plans prior to the increase, when they would have been cheaper.
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I think you will see a big spike in rates in the next 2 years. You can only print money and keep artificially low rates for so long.