The shift towards index-based investing continues to reshape purchasers’ life insurance coverage.

The variety of particular person listed common life insurance policies offered elevated 18% between the third quarter of 2022 and the third quarter of 2023, based on preliminary U.S. market survey information from LIMRA.

IUL coverage gross sales elevated 26% within the second quarter. IUL insurance policies now account for twenty-four% of all U.S. retail life gross sales premiums, or about $900 million in annualized premiums per quarter.

Annualized premiums from every kind of U.S. particular person life gross sales elevated to $3.7 billion within the newest quarter, up 5% from the full for the year-earlier quarter.

What it means: First, index-based investing got here to your purchasers’ mutual funds. Now, it’s additionally coming for his or her life insurance coverage.

Listed common life insurance coverage: An IUL coverage is a type of everlasting life insurance coverage that builds money worth.

Shoppers can use IUL protection in property planning and retirement planning, in addition to to supply demise profit safety.

An IUL coverage proprietor will get a set charge of demise profit worth progress. If chosen funding market indexes carry out properly, the holder could get an additional quantity added to the expansion charge.