Milliman Survey Indicates Past Trends Continue: Life Insurers Focus on Living Benefit Riders and Indexed Universal Life

Jul 30, 2015, 10:32 ET from Milliman, Inc.

SEATTLE, July 30, 2015 /PRNewswire/ -- The popularity of indexed universal life (IUL) products has increased over the last few years as reported by participants in Milliman's annual comprehensive study of universal life (UL) and IUL issues. Total IUL sales as a percent of total UL and IUL sales combined for survey participants increased from 25% in 2011 to 45% during the first nine months of 2014. During this period, cash accumulation IUL sales comprised 82% of total cash accumulation UL/IUL sales, and current assumption IUL sales comprised 17% of total current assumption UL/IUL sales. Overall survey statistics suggest that companies plan to focus more on cash accumulation IUL and current assumption IUL products, and less on universal life with secondary guarantees (ULSG). Five of the 29 survey participants reported discontinued sales of ULSG products.   

During the first nine months of 2014, sales of chronic illness riders as a percent of total sales were 17% for UL products and 45% for IUL products.  Similarly, during the first nine months of 2014, sales of long-term care (LTC) riders as a percent of total sales were 18% for UL products and 9% for IUL products. Nearly 86% of survey respondents expect to market either an LTC or chronic illness rider within the next 24 months.  

The eighth annual Milliman study, "Universal Life and Indexed Universal Life Issues", focuses on issues relative to universal life with secondary guarantees (ULSG), cash accumulation UL, current assumption UL, and the corresponding indexed UL (IUL) versions.  Twenty-nine carriers of universal life and indexed universal life products participated in this annual survey. 

In addition to sales information, the study also includes detailed information on product and actuarial issues, such as target surplus, reserves, risk management, underwriting, product design, compensation, pricing, administration, and illustrations.

The 344 page "Universal Life and Indexed Universal Life Issues – Detailed Report" is available for purchase by visiting the Milliman website at or by calling Gina Ritchie at (312) 499-5605.  Participating companies receive a complimentary copy of the detailed report, as well as individual company responses reported on an anonymous basis.

About Milliman

Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe.  For further information, visit

SOURCE Milliman, Inc.