Whole Life Insurance Growth and Industry Trends in 2024

Happy insurance agent communicating with clients.
Discover the growth of whole life insurance in 2024. Learn how AI and economic trends are driving the industry, and explore PWYB's customized solutions for your financial security.

Whole Life Insurance Growth & Industry Trends in 2024

Understanding Whole Life Insurance Growth

The life insurance industry is evolving significantly in 2024, especially for whole life insurance growth. Key trends, such as the use of AI and the creation of innovative products, are driving growth in the industry. According to LIMRA, these trends, combined with current economic conditions, are improving the market.

At Protect What You Built (PWYB), we understand how important it is to stay up to date with these changes. We offer various types of life insurance to meet your needs, whether you’re interested in term life, whole life, or a more flexible option like universal life insurance.

Lower Interest Rates & Economic Conditions in 2024

Impact of Interest Rates on Life Insurance

Life insurance trends in 2024 include a significant change in interest rates. Interest rates have been decreasing after a period of increase that began in 2022 and peaked in early 2023. According to LIMRA, this decline in interest rates is making whole life insurance growth more popular, despite some challenges like lower returns on dividends. Lower interest rates also mean less competition from other financial products, such as annuities and mutual funds, making whole life insurance growth more attractive. Additionally, a strong economy with low inflation and unemployment means more people can afford life insurance premiums, boosting sales.

Whole life insurance, which we offer at PWYB, provides lifelong coverage and includes a cash value component that grows over time through interest or investments. This type of policy can be a valuable asset in your financial plan, particularly when the economy is strong.

AI & Product Innovation: Key Growth Drivers for Whole Life Insurance Growth

Key Applications of AI in Life Insurance

Artificial intelligence (AI) in life insurance and product innovation are major factors in the growth of the industry. Key applications of AI include:

  • Speeding up the underwriting process

  • Analyzing customer data to recommend personalized policies

  • Assisting with customer service through chatbots For example, AI is being used to speed up the underwriting process, analyze customer data to recommend personalized policies, and even assist with customer service through chatbots. LIMRA reports that more companies are using AI to make it easier for agents to work with customers. At PWYB, we are committed to leveraging the latest technology to offer better services and customized insurance solutions.

The impact of AI on jobs: fired business people leaving the office

Product Innovation in Life Insurance

New products like simplified, guaranteed-issue policies and combination products for life and long-term care are also helping attract new customers by reducing the complexity of applying for insurance. Our indexed universal life insurance links cash value growth to a stock market index, which can offer higher returns while still providing protection for your loved ones.

Karen Terry, assistant vice president at LIMRA, emphasizes that simplifying the application process is crucial for growth. At PWYB, we conduct thorough assessments to help you determine the appropriate amount of coverage based on your income, debts, and future goals, ensuring you have the right level of protection.

Challenges Facing the Life Insurance Industry

Reaching Underserved Markets

Despite positive trends, the life insurance industry still faces challenges, such as the increased use of social media, which can make it harder to provide personalized advice, and the need to reach underserved markets. LIMRA points out that younger people are exploring life insurance options through social media but still want to speak with an advisor before buying a policy. This highlights the importance of having enough well-trained agents. Recruiting and training new agents will be key to growing the market.

At PWYB, we focus on providing personalized service and building trust with our clients. We believe understanding your family’s needs is essential, which is why we offer ongoing support and regular policy reviews to ensure your coverage remains aligned with your changing circumstances.

Bryan Hodgens, senior vice president at LIMRA, notes that while new products will drive sales, having enough agents is crucial for growth. This is especially true as younger generations delay major life milestones, such as getting married or buying a house, which are often triggers for purchasing life insurance.

Businesswoman analyzing the market condition of Whole Life Insurance Growth

Whole Life Insurance Growth Outlook for 2024

Growth Projections for Whole Life Insurance

LIMRA projects whole life insurance sales to grow by around 3% by the end of 2024. The combination of lower interest rates, a strong economy, AI integration, and innovative products is expected to boost the market. For consumers, this means new and simpler options, making it an excellent time to consider life insurance.

At PWYB, we offer a variety of life insurance products to meet your needs. Whether you’re interested in term life insurance or whole life insurance with a cash value component, our specialists are here to guide you through the process. Our services are also designed to integrate seamlessly with your estate planning, providing a holistic approach to managing your finances.

Take Action: Secure Your Life Insurance Today

If you’re considering life insurance, now might be the ideal time to explore your options. Whole life insurance is expected to grow, and industry innovations could make it even easier to secure the coverage you need.

Get a Free Consultation

Everyones situation is unique so fill out the below form to set up a call with one of our licensed agents if you would like to learn more how PWYB can help you!

More Articles

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Always consult with qualified professionals before making decisions about insurance or financial strategies.