New premium sales of individual life combination products rose 62% in 2010, reaching $1.2 billion, boosted by linked-benefit products, according to LIMRA. The increase marks the second straight year of double-digit growth.

Last year, linked-benefit products grew 60%, representing 45% of policies sold. The linked benefit products provide long-term care benefits above and beyond the life death benefit.  The buyer decides on the life face amount, and then decides on the additional LTC benefit.  These are mostly single premium and all-in-one packaged products.

“Overall sales of combination products in 2010 were remarkable, especially coming off the double-digit growth experienced in 2009,” said Catherine Ho, LIMRA research actuary, in a statement.

She attributed the growth to carriers boosting their marketing campaigns” and consumers’ growing desire for an alternative to stand-alone long term care insurance (LTCI).

“For some buyers, combination products are a more affordable alternative to stand-alone LTCI,” she added.

New sales of combination products represent 6% of the individual life insurance market, based on new premium.  In addition, with more than 26,000 policies sold in 2010, policy count of combination products increased 69% over 2009 sales results.

Similar to the overall individual life insurance market, sales of whole life (WL) and universal life (UL) combination products increased in 2010 over 2009.  However, UL combination products continue to be the biggest segment of this market, not just in premium but also in new policies and insurance sold, LIMRA found.

New premium rose 58% from 2009, representing 80% of the combination market.  and policy count increased 60% from 2009 sales results.

Sales of variable life products have been down the past two years, not yet recovering from lows hit during the financial crisis.  however, new premium sales of variable universal life (VUL) combination products increased 44% and policy count improved 88% last year.

Acceleration products experienced 76% growth in 2010. Sales growth of acceleration products exceeded linked benefit products in 2010 and now makes up 55% of the market by policies sold.  Acceleration products provide LTC benefits up to the amount of the life death benefit and are more commonly riders that can be attached to many of the products in a carrier’s life product portfolio.  When LTC benefits are needed, it draws down or accelerates the death benefit.  these products typically have much higher face amounts, but the portion that can be accelerated for LTC may be capped.

LIMRA found that buyers in their 60s continue to be the biggest portion of in-force policies. however, acceleration products are gaining traction in the younger market and with higher face amount policies.  The overall trend in average face amount has steadily increased for acceleration products, but stayed level for linked benefit products.

According to the study, female policyowners account for almost 65% of in-force policies, an increase of 6% from the 2009 survey.  The biggest gap between genders occurs between issue ages 75 and 79.

<a href="http://ifawebnews.com/2011/08/30/doctors-fear-medical-malpractice-claims-eye-new-legal-protections/tag:news.google.com,2005:cluster=http://ifawebnews.com/2011/08/30/doctors-fear-medical-malpractice-claims-eye-new-legal-protections/Tue, 30 Aug 2011 23:12:15 GMT 00:00″>Linked-benefit products spur 62% combined individual life sales surge