After sharp submission declines earlier in the year, U.S. life insurance application activity has come back vigorously, up 14.1% in July YOY, according to the latest edition of the MIB Life Index.
The most expansive YOY growth for a July on record, this month’s results show a significant demand matched by a resilient industry that has successfully adjusted to how business is acquired and underwritten. July’s application activity grew 4.0% over June’s numbers, the first positive month-over-month change in the same timeframe since the inception of the MIB Life Index, and showcased double-digit growth in all product lines on a year-over-year basis.
At month-end close, the composite MIB Life Index is up 3.2% YTD through the end of July.
Below age 60 life insurance buyers showed unprecedented growth with applicants’ ages 0-44 up 18.9%, and those ages 45-59 up a healthy 12.9% YOY in July. Ages 60+ rose 4.0% YOY. Year-to-date, applicants ages 0-44 are up 5.5%, those 45-59 are up 2.2% and applicants ages 60+ are off -1.4% YTD. Submissions for older age applicants 60+ have lagged all year, off -4.8% in the first seven months of 2020.
July also recognized a year-over-year increase of 28% or higher for face amounts of $5M+ with applicants over age 60. Face amounts of $1M-$5M did not see favorable results YOY with ages over 50, noticing a -5% or greater decline in these mid-level banding ranges.
MIB’s COO presents the industry’s results for the first two quarters of 2020 in the MIB Life Index At The Half video. Login to the Enhanced Life Index Portal to download the 2019 MIB Life Index Annual Report at no charge or register to view the entire archive at www.mibsolutions.com/regLI.
