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15 New Whole Life Insurance Statistics

Whole Life Insurance Industry Trends for 2024

Hello, and welcome to our 2024 update on whole life insurance statistics. If you're here, you're probably looking for the latest data and trends to make informed decisions about your life insurance options.

Whether you're an insurance professional, financial advisor, researcher, journalist, or a potential policyholder, we have compiled a comprehensive list of the 15 latest statistics on whole life insurance for you.

These insights will help you understand the current landscape and guide your decision-making process.

Market Share of New Policies

According to the American Council of Life Insurers (ACLI), whole life insurance policies made up 34% of all new life insurance policies sold in 2023.

This figure shows that whole life insurance is retaining its popularity as a preferred choice among consumers for permanent coverage and accumulated cash value benefits.

Total Face Value Increase

LIMRA's research indicates that the total face value of whole life insurance policies purchased in the United States went up by 4% from 2022 to 2023.

This growth reflects a renewed interest and trust in whole life insurance as a stable and valuable financial product.

A Form of Savings

A report from the National Association of Insurance Commissioners (NAIC) shows that 62% of whole life insurance policyholders view their policies as a form of forced savings.

This sentiment aligns with the idea that whole life insurance is not just about protection, but also about building a financial nest egg over time.

Average Death Benefit

The Insurance Information Institute (III) noted that the average death benefit for whole life insurance policies issued in 2023 was $155,000.

This provides a baseline for understanding the typical coverage amounts that people are choosing for their whole life policies.

Customer Satisfaction

Recent data from LOMA reveals that 78% of whole life insurance policyholders expressed satisfaction with their policy’s performance in 2023.

This high satisfaction rate demonstrates strong policyholder loyalty and perceived value.

Age of Owners Changing

The U.S. Census Bureau indicates that 49% of new whole life insurance policyholders in 2023 were under the age of 40.

This suggests that younger generations are increasingly recognizing the benefits of whole life insurance for long-term financial planning.

Loan Provision

According to LIMRA, 87% of whole life insurance policies include a loan provision, giving policyholders the option to borrow against the cash value of their policy.

This loan feature adds an extra layer of financial flexibility.

Lower Lapse Rate

An actuarial study by the III found that whole life insurance policies have a lower lapse rate compared to term policies.

Specifically, only 3.5% of whole life policies lapsed within the first three years.

This indicates strong commitment among policyholders.

Premium Revenues Rise

Data from ACLI shows that the whole life insurance sector saw a 4% increase in premium revenues in 2023.

This steady growth highlights the sector's resilience and the continuous demand for these policies.

Importance of Cash Accumulation in Policy

A survey by the Insurance Information Institute revealed that 61% of whole life insurance buyers cited the accumulation of cash value as a primary reason for their purchase.

This dual benefit of coverage and savings is a key attraction.

Mutual Companies Gain

LIMRA’s market analysis indicates that mutual companies, which often pay dividends to whole life policyholders, experienced an 8% rise in new policies sold in 2023.

These dividends enhance the overall return for policyholders.

Average Policy Premiums

NAIC data shows that the average annual premium for a whole life insurance policy in 2023 was $1,350.

Knowing the average cost can help potential buyers budget for their long-term coverage.

Popular Demographic

An assessment by the Insurance Information Institute highlights that whole life insurance policies are particularly popular among married couples, with 67% of policyholders being married.

This demographic trend helps insurers target their marketing efforts effectively.

Average Cash Value Accumulation

III reports that the average cash value accumulation on whole life policies over 10 years is about 27% of the policy's face value.

This growth potential showcases the benefits of whole life policies as a long-term investment.

Low Cancellation Rates

A recent LIMRA study found that only 9% of whole life policyholders plan to cancel their policies in the next five years.

Such low cancellation rates indicate strong confidence and satisfaction among policyholders.

Senior Market Increase

NAIC statistics reveal a 3% increase in whole life insurance policy sales among senior citizens (aged 65 and older) in 2023.

This indicates that older adults are using whole life policies for estate planning and legacy purposes.

Agents and Brokers – Guidance Important

ACLI's report highlights that 72% of whole life insurance policies are sold through agents and brokers.

This underscores the importance of personal advice and professional guidance in the purchase process.

Mutual Company Data

Life Office Management Association (LOMA) data shows that whole life policies offered by mutual companies tend to have slightly higher premiums but offer better dividend payouts.

This trade-off may be worth it for those looking for additional returns.

Share of Total Life Insurance Market

The U.S. Census Bureau states that whole life policies account for 22% of the total life insurance market by policy count.

This significant market share illustrates whole life's enduring popularity.

Use of Cash Value

The Insurance Information Institute suggests that 70% of whole life insurance buyers use the cash value component to fund significant life events, such as education or retirement.

This versatile financial tool can be particularly useful for long-term planning.

Considering this comprehensive data, it’s clear that whole life insurance continues to offer strong benefits and maintains a stable position in the market.

If you’re considering whole life insurance, these statistics and trends should help you compare products, make informed decisions, and integrate these insights into your financial planning.

For tailored advice and to get a free quote, consult with a qualified life insurance professional today.

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