Life insurance sales closed 2023 with a very strong fourth quarter, according to Wink’s Sales & Market Report. Non-variable universal life sales for the fourth quarter totaled $894.5 million, up more than 15.5% compared to the previous quarter and up 4.1% compared to the same period last year. Non-variable universal life (UL) sales include both indexed UL and fixed UL product sales.
Noteworthy highlights for total non-variable universal life sales in the fourth quarter included National Life Group retaining the No. 1 overall sales ranking for non-variable universal life sales, with a market share of 14.6%. Transamerica Life’s Transamerica Financial Foundation IUL was the No. 1 selling product for non-variable universal life sales, for all channels combined for the eleventh consecutive quarter.
Indexed life sales for the fourth quarter were $799.1 million, up more than 16.2% compared with the previous quarter, and up 5% compared to the same period last year. Indexed life sales include both indexed UL and indexed whole life. This was a record-setting quarter for indexed life sales, topping the prior 4th quarter 2022 record by 5%.
This was also a record-setting year for indexed life sales, topping the prior 2022 record by 3.6%. “I am projecting that 2024 will be another record year for indexed life,” said Sheryl J. Moore, CEO of both Moore Market Intelligence and Wink, Inc. “It is the fastest-growing segment of the life insurance market.”
Items of interest in the indexed life market included National Life Group retaining their No. 1 ranking in indexed life sales, with a 16.3% market share, Transamerica, Pacific Life Companies, Nationwide, and Lincoln National Life rounded out the top five, respectively. Transamerica Life’s Transamerica Financial Foundation IUL was the No. 1 selling indexed life insurance product, for all channels combined for the eleventh consecutive quarter. The top primary pricing objective for sales this quarter was cash accumulation, capturing 76% of sales. The average indexed life target premium for the quarter was $11,974, an increase of nearly 3% from the prior quarter.
Fixed UL sales for the fourth quarter were $95.6 million, up 10.2% compared to the previous quarter and down 10.6% compared to the same period last year. Noteworthy highlights for fixed universal life included the top primary pricing objective of No Lapse Guarantee capturing 50.1% of sales. The average UL target premium for the quarter was $5,736, an increase of more than 4% from the prior quarter. “While UL sales were up for the quarter, we are forecasting that they will be down in 2024,” Moore said.
Whole life fourth quarter sales were $1.1 billion, up 14.3% compared with the previous quarter, and down more than 6.3% compared to the same period last year. Items of interest in the whole life market included the top primary pricing objective of Final Expense capturing 54.5% of sales. The average premium per whole life policy for the quarter was $4,051, an increase of more than 5% from the prior quarter.