Life insurance ownership has risen in recent years, with approximately 5 million more households having coverage in 2016 than during 2010, according to recent data reported by LIMRA. For the third month in a row, however, fewer Americans filled out applications to buy, based on the latest numbers available.
Life insurance application volume slipped 0.9 percent in October.
Application volume for individually underwritten life insurance in October slipped slightly, down 0.9 percent from the corresponding period last year, data from MIB Index showed. Though the dip in buying makes it three consecutive months that purchase activity has retreated, the slowdown wasn't as significant, down from a 1.3 percent pullback in August and 2.3 percent in September.
Increase in life insurance buying among older adults
Helping to offset some of the decline was a pickup in life insurance application activity among senior citizens. Men and women 60 years of age and older bought slightly more individual life insurance policies in October year over year, up 1.7 percent, according to MIB Index. For both 45- to 59-year-olds as well as the 44 and under, purchases fell, almost mirroring the national decrease at 1.2 percent and 1.6 percent, respectively.
How will the remainder of the year pan out for life insurance purchases? Experts at MIB Index are encouraged, based on 2016 being a strong year overall.
"As we head into the year-end sales cycle, we remain optimistic the Life Index will finish strong," the report said.
The insurance industry as a whole is similarly sanguine about what's to come with President-elect Donald Trump taking the oath of office in late January. During the annual Insurance Market Summit held in Hartford, Connect on Nov. 10, insurance CEOs were largely of like mind, encouraged by the incoming commander in chief's stated desire to reduce regulation to stimulate a somewhat moribund economy, according to the Hartford Courant.