Final expense life insurance sales up 5% in 2015

by Ryan Smith22 Jul 2016
Final expense life insurance sales were up 5% and policy count up 4% in 2015, according to a survey by the Life Insurers Council, CSG Actuarial and Competiscan.

“While some carriers have been very successful selling final expense life insurance directly to consumers, more than 80% of policies were sold through independent agents or independent marketing organizations,” said Jeffrey Shaw, executive director of the Life Insurers Council. “We saw polices sold direct were most likely guaranteed issue contracts with limited initial death benefits and those sold through IMOs tended to be simplified issue contracts with full immediate death benefits. Given the operational challenges involved with managing high-volume, low-premium simplified issue policies, we anticipate more carriers expanding their direct distribution channel.”

According to a news release, 31 carriers participated in the survey, with 23 reporting sales for both 2014 and 2015. The 2015 data showed that 60% of the policies were sold to women and 40% to men. The average age of purchase was 63 years old. The average issue age in 2015 was 66.8.

The survey also found that 91% of the premium sold in 2015 was simplified issue. Limited death benefit policies are offered to a small segment of prospects who don’t qualify for a full death benefit for health reasons, the news release states.


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