U.S. Life Application Activity Gets the Chills
Falling life application activity could be the result of tough comparisons with the application boom that occurred early in the COVID-19 pandemic, the effects of inflation on consumers’ ability to pay for life insurance, and, possibly, a decrease in consumer access to life insurance advisors.
Activity by Age
Here are the activity change figures, for December, for applicants in five different age groups:
Ages zero-30: -3.4%
Ages 31-50: -3.5%
Ages 51-60: -5.6%
Ages 61-70: -6.0%
Ages 71 and older: -3.7%
The Policygenius Price Index
Web broker Policygenius publishes a monthly term life price index that draws on its own sales data. Its index is based on pricing information for 20-year, level-premium term life coverage.
The lowest-priced coverage included is for a 25-year-old female nonsmoker who needs $250,000 in death benefits, and the highest-priced coverage is for a 55-year-old male smoker who needs $1 million in death benefits.
This month, the lowest price in the Policygenius price tables, for the 25-year-old female nonsmoker seeking just $250,000 in coverage, held steady at $14.19.
The highest price, for the 55-year-old male smoker seeking $1 million in coverage, fell slightly, to $1,011.92, from $1,011.93.
(Image: Adobe Stock)
