Clients’ Universal Life Policies May Contain Increase in Retirement Planning

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What do you want to know

  • Milliman actuaries based their statistics on survey responses from 23 insurers.
  • Participating insurers reported a total of 412,233 individual universal life policies of all kinds in 2020.
  • About half of traditional universal life policies sold during the survey period included long-term care riders.

Many clients who arrive with newly purchased individual life insurance policies may have something more in their portfolio: long-term care benefits.

Two Milliman actuaries—Carl Friedrich and Michelle Krysiak—have included a section on long-term care riders in a new report on sales of individual universal life, indexed universal life and variable life policies in the United States in 2020 and in the first three quarters of 2021.

The 23 insurers that participated in the latest Milliman UL sales survey said they sold a total of 412,233 of the three main types of UL policies in 2020.

Issuers were on track to increase the number of UL policies sold by around 13% in 2021.

Long-term care benefits

Some consumers use long term care endorsements attached to UL policies to pay for long term care services.

Milliman actuaries reported the use of long-term care benefit riders by indicating the percentage of individual UL sales associated with policies with long-term care riders.

Here is the share of UL individual sales premium, for the first three quarters of 2021, that came from sales of policies with long-term care riders, broken down by UL product type:

  • Traditional UL: 49.8%
  • UL indexed: 22.5%
  • Variable UL: 33.4%

What this means

If you’ve helped clients buy their life insurance policies, you should know what’s inside.


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