Life Insurer’s Council Reports on Preneed Sales

In two different articles that you can find here and here, the Life Insurance Council (LIC) reported on the results of their study of 2017 Preneed activity.  The study found mixed results in that annual premiums for preneed life insurance was $1.3 billion – down 3% from 2016.  The study also found that multi-pay policies were down 11% from 2016.

On the other side of the ledger, however, the LIC found that preneed annuity sales increased 5% from 2016 levels.

Jeff Shaw, Executive Director of the LIC, stated, “The decline in 2017 new annualized premium was primarily driven by one major insurer and declines reported across most of the smaller insurers.  However, based on demographic trends, there is an expectation that this market will grow over the next ten years.”

The LIC Preneed survey Report is a comprehensive report of the preneed insurance market and has been collecting data since 2007.  Fifteen companies in total participated in the report.

Funeral Director Daily take:  I’m of the assumption that demographic trends are one characteristic of what is going to happen, but funeral type is another characteristic.  Could it be possible in the future that we actually have more numbers pre-arranging and pre-financing but at the same time overall premiums go down because of the type of funeral or disposition that is being chosen by the consumer.  This will be an interesting statistic to watch.

 

 

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