Older Consumers Flock to Cash-Value Life Policies

Older consumers’ interest in cash-value life policies helped keep U.S. life insurance application activity stable in November, MIB Group says.

Overall activity was just 0.1% higher than in November 2022, but activity for consumers climbed 11.6%, year-over-year.

For consumers ages 71 and older, application activity increased by more than 10% for universal life insurance, which builds cash value.

Application activity for consumers ages 71 and older was strongest for coverage amounts ranging from $1 to $500,000 and from $1 million to $2.5 million. Activity for amounts over $5 million fell more than 10%.

What it means: The MIB figures suggest that ordinary mortality planning, retirement planning and long-term care planning needs shaped older consumers’ application trends in November.

If ultra-high-net-worth clients were rushing to protect themselves against the possibility of a big estate tax increase in 2026, application activity for coverage amounts over $5 million would have been stronger.