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Life insurance declines in the United States

Individual life insurance sales in the United States fell from 12.9 million policies sold in 1975 to 9.8 million in 2020, the latest period for which data is available, according to LIMRA, a global association of insurance and financial services companies.

For the Primerica company, many Americans have inadequate or no life insurance coverage.

At the end of 2021, Primerica, which is a leading provider of financial products for middle-income households in the United States and Canada, had 129,515 licensed life insurance sales representatives.

Also at the end of that year, the company insured more than 5.7 million lives and had approximately 2.7 million client investment accounts.

Life insurance

In 2020, Primerica ranked as the number two issuer of face amount term life insurance in the United States.

Its business model positions it to reach underserved middle-income consumers in a cost-effective manner and has proven itself in favorable and challenging economic environments.

In that same setting, in 2021, there were approximately 62.7 million eligible Medicare beneficiaries in the United States, according to the Kaiser Family Foundation. The number of people over the age of 65 continues to rise.

According to the US Census Bureau, approximately 10,000 people turn 65 every day.

As a result, the number of Medicare-eligible participants is expected to continue to grow significantly.

In general, Primerica’s customers are middle-income consumers, which the company defines as households with annual incomes of $30,000 to $100,000.

According to the 2021 US Census Bureau Current Population Survey, the latest period for which data is available, nearly 50% of US households fall in this range.

On the other hand, many middle-income families find it difficult to save for retirement and other personal goals.

And many other middle-income families have numerous debt obligations from credit cards, car loans, and home mortgages.

While the company posted revenue of $2.71 billion in 2021, up 22% year-over-year, its net profit was $372 million, down 3 percent.

Its revenues were driven by higher commissions and fees earned in the investment and savings products segment and net premium growth in the term life insurance segment.

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