US life insurance applications remained largely unchanged in April, with nuanced shifts across age groups and policy types revealing intriguing market dynamics, according to the latest MIB Life Index report released Thursday.
Overall application activity increased marginally by 0.5% year-over-year, maintaining a trend of stability. However, a closer examination unveils significant variations among different demographic segments and policy categories.
The most striking trend emerged in the senior population, with ages 71 and older experiencing remarkable expansion. This age group posted a substantial 21.2% year-over-year increase in life insurance applications, marking the second consecutive month of double-digit growth. Immediately preceding this bracket, individuals aged 61-70 also demonstrated positive momentum, registering a 5.9% increase.
In contrast, younger age groups showed more tepid performance. Applications for individuals aged 0-30 declined by 3.2%, while the 31-50 and 51-60 age ranges experienced flat or modest decreases.
Term life insurance emerged as the standout performer, surging 17.9% year-over-year. This category has maintained consistent monthly growth since July 2024. Conversely, universal and whole life insurance policies encountered declines, with universal life experiencing a 5.7% drop and whole life decreasing by 1.6%.
The universal life segment has struggled particularly, failing to achieve year-over-year growth since November 2023.
The report highlighted intriguing patterns in coverage amounts. Applications for policies exceeding $250,000 demonstrated notable growth, with particularly robust increases in high-value brackets. Policies between $250,000 and $1 million saw double-digit growth, while those between $2.5 million and $5 million experienced triple-digit expansion.
Experts caution that the triple-digit growth in specific high-value segments represents a small portion of total applications, potentially magnifying percentage changes. While the April data suggests a stabilizing market, the sustained growth among senior populations and the consistent performance of term life insurance warrant continued observation.
The MIB Life Index report provides a comprehensive view of US life insurance application activity, drawing from data reported by its member organizations.
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